The market is strongly in favor of the bulls as of yesterday's close, therefore the risk is VERY high for shorting here despite the momentum starting to decline on long-term indicators like the as shown on the chart.
Short entry: ideally 2768, else 2762
Target: open intraday gaps way below 2700, around 2692
Stop loss: 2770
Here is my old chart from March 14:
I'm going to use 2789.5 as stop loss for this short.
Risk reward from 2768 back down to 2725 would be exactly 2
Risk reward from 2768 back down to 2712 would be 2.60
Risk reward from 2768 back down to 2692 would be 3.53
Originally I wanted to add a second much higher short today right after the open around 2776-2778, but then I got greedy and expected the market to go above 2782 before a decline would start, but then the market plunged lower right away.
I did this because bulls could try to retest yesterday's high at 2779.90 and they might also try to go towards the recent S&P 500 e-mini futures high at 2783.50.
Today on Friday the high so far was 2777.68 and therefore I have been right with my last outlook that bulls are going to try to get beyond 2780.
Now for June 12 there is a better chance to go short after the Trump-Kim Summit is over.
Short entry: 2786
Stop loss: 2809
Risk/Reward ratio: 2.13
Nasdaq 100, breakout