My best guess on the coming correction based in historical percentages over 10%
Q's down big on four times average volume which suggests selling exhaustion for now. We could easily see a bounce to the falling trend line and maybe another failure to break through. I haven't drawn in the lower, parallel trend line due to clutter, but this looks like a big bull flag to me. We drop into the 82's and then this morphs into a down trend. At this...
Simple. Q's close above $90 and look for for a test of swing high of 91.15. If this happens, then Q's will reassert themselves as market leader and will drag all other indexes along with them. I don't really know if this is going to happen but based on the action over the last two days and with $SOX index closing at a new high, it looks likely. GL
How the QQQ handles the oversold condition, will decide if the upward trendline can finally be broken.
86 of the $NDX's 100 components closed in the red today. Amazing that Q's only closed down 1.14. Q's now in confirmed A-B-C down after clearly breaking the B point. I've drawn in the possible course they might take on their way to the $83.50 area but I really have no idea about whether or not they're going to bounce. They might just drop straight down, though it...
Ok, so just like previously posted SPY H&S possibility, here's QQQ possible H&S setup (they're pretty much identical for all practical purposes). H&S wouldn't be confirmed until QQQ drops to around 83.5-84ish area to form neckline, then move back up to form a right shoulder (possibly 88-89 area (?), then breaking down back through neckline. Time will tell! NOTE...
From Here to 95 $NDX $NQ_F
My levels might be slightly off, but since we are establishing a first touch of 2000 crash levels of support lost that initiated the crash... we will fail and retest support gained that brought us here.
Working off oversold & back above 50day. Can we touch top of broadening wedge?
$AAPL didn't help the cause but Williams%R was suggesting a bounce was near.
With the QQQ breaking down, look to lean short in AMZN, AAPL,GOOG,LNKD,NFLX..etc...