An in the may be expected as well, given chaotic nature of markets and overhead resistance, reaching overbought seems unlikely IMO.
This is textbook case from John J Murphy, of the Financial Markets, Fig 4-10a; break, retracement back to the TL and rejection.
Closing my longs Tues 10/06 and scaling in shorts; week of 12 Oct might be quite volatile IMO; price may exceed the Fibo at 3444 slightly IMO.
Weakness may set in as early as Wednesday or Thursday this week; intensify week of 12- 16, and panic selling may appear week of 19 - 23 Oct.
in the week prior to election is likely IMO, but weakness and might persist in the days leading up to it.
Here's Murphy's free textbook pdf , I highly recommend this read:
Scroll down to p.2, LOL; p;1 is blank, not a screen load error! Enjoy! This is not financial advice, trade at your own risk, GLTA!!
SHORT THE RALLY I MO
IMO this was coming regardless, he forced it sooner.
Today was amazing; shorted the AM drop, shorted the rally by pure happy chance just before the tweet, based on price reached 3424 and QQQ >280; rode the Donald Train and bought the bounce, shorted again and held 40 bear spreads for Wednesday.
Futurz look bearish mostly for NQ1!, expect a tech hammering IMO; notably RUT was very Bullish and gave back very little today, showing Bullish Divergence;
Warning: I would not get slap-happy and load up on puts, MOMO could easily jump on the dump and run it up again. That said; a waterfall cascade is certainly a real possibility now...
Giving back some of yesterday's win, kept pos small just b/c of this- damned tweeter! IMO trend is still down, each successive hig price on QQQ is $2 below the last...