I've got a good amount of long deltas on in Nasdaq components, so all I'm doing here is gameplanning what a rollover could do.
We had a clear failed breakout, where the new highs were followed by that trainwreck of facebook earnings. That led to increased selling before this small bounce.
Right now, the bounce... well, it's OK but it's not aggressive. If price continues to be accepted at these levels, odds are we'll have a lower low get knocked out.
This is known as an A-B-C reversal... there's a lot of different names for it.
170 is a HUGE level on the Q's. It's the gap levels from that island reversal a few months back, and it's held as resistance *and* support over the past few months.
It's also the measured move target, assuming that the second move is similar to the first.
Now look, I'm not calling for the end of western capitalism here.
The trend is still up.
Yet, that's the play that I see if buyers don't aggressively come into these levels.
We had a clear failed breakout, where the new highs were followed by that trainwreck of facebook earnings. That led to increased selling before this small bounce.
Right now, the bounce... well, it's OK but it's not aggressive. If price continues to be accepted at these levels, odds are we'll have a lower low get knocked out.
This is known as an A-B-C reversal... there's a lot of different names for it.
170 is a HUGE level on the Q's. It's the gap levels from that island reversal a few months back, and it's held as resistance *and* support over the past few months.
It's also the measured move target, assuming that the second move is similar to the first.
Now look, I'm not calling for the end of western capitalism here.
The trend is still up.
Yet, that's the play that I see if buyers don't aggressively come into these levels.