Almost like clockwork, the bulls have come rushing back into technology overnight, seeking to immediately buy potentially oversold Fang stocks from yesterday's selloff.
My read of the SQQQ Chart,the 3 X short Nasdaq 100 ETF, shows that a decline back towards 9.50 - 9.75 could be setting up the handle, on a very bullish "Cup and Handle" Short Trade on the Nasdaq 100.
Seasonal factors with the early Memorial Day holiday next week, could set a bullish tone/light volume in the market, for the balance of the week.
Accumulation of SQQQ into any short term seasonal NDX rally for the balance of this week should pay off handsomely for trader's, who recognize and use counter trend accumulation price points on the chart.
Everything I'm looking at suggests the market is consolidating for the next leg up. Tread carefully on the short side. Tons of bad news has come out...and we're not budging. Daily index charts were finding support on ichi clouds and 200 MAs and volume nodes. There are some breadth indicators that are bearish overall for the short term I'd say downside is limited from here. When bad news is ignored by the market be careful on the short side. I believe a squeeze and a leg up is coming. Semis, tech big names have all sold off considerably and are finding support there are tons of entries right now with good R/R from the long side and limited R/R from the short side. Outside of the FED raising rates tomorrow...up looks like the trend. VIX looks weak as well.