Examining NASDAQ, I've pinpointed a strategic SHORT opportunity as bearish signals begin to surface. The index has shown vulnerability at critical resistance levels, forming a potential double top pattern—a classic reversal indicator. Accompanied by bearish divergences in the RSI and a crossover in the MACD trending downward, the momentum appears to be shifting.
Economically, concerns are mounting regarding overvaluations in tech stocks amidst tightening monetary policy by the Federal Reserve and rising bond yields, which could dampen investor enthusiasm and lead to a pullback. Further, the tech-heavy index may also be more sensitive to regulatory shifts and global economic slowdowns, adding layers to the bearish outlook.
This SHORT position is planned with tactical precision, targeting entry points just below recent support levels to capitalize on the anticipated decline. Targets and stop-losses are set meticulously, ensuring a disciplined approach to risk management. This strategy aims to leverage the current technical configurations and macroeconomic pressures, positioning for profit in the event of a NASDAQ correction