Nasdaq sell - if price closes below -0.27 Fib extension
Hello traders and analyst -
we have been monitoring the Nasdaq and profit taking, but now it is time for a new outlook.
Despite the obvious of the Nasdaq and technology sector growing throughout the V-shaped first demand zone hit back in March - the Nasdaq has reached its all time high.
W formation:
The Nasdaq ceiling of 11,000 was tapped and now a W formation has occurred at the top - what happens after a W formation?
We have a sell to correct - as the extension will not be sustained.
Also conducting a Wave pattern [not shown] but applies - Wave 5 profits are now being completed.
Fibonacci -
Now what can we see - price is battling for the monthly close of -0.272% over extension - However, we can see price moving against this to close below. If price does not close below - await the next move on the August candle to verify further selling.
Monthly low - March - 1.00
0.00 point is the Feb high
So our technical view: as with the S&P, VIX
it is the same scenario - where price has begun to complete a 5 wave target and now needs to break the rising channel which is also the supply zone.
COT data -
Long Shorts Total %Longs %Shorts Net
Avg_13 13,697 9,948 23,645 58% 42% 3,749
Avg_20 13,598 9,699 23,297 58% 42% 3,899
Avg 50 14,545 10,071 24,616 59% 41% 4,474
Avg_130 14,566 10,037 24,604 59% 41% 4,529
Buyers keep looking to take out the stops of sellers but the shorts are creeping in now. let's await the 10,800-11,000 before assessing again.
Same fundamental view from previous posts apply. Nothing has changed.
A question, will the stimulus provide further support or is the show over? A reset is needed?
Many thanks for all the likes and support.
To any new followers, welcome and we hope we inform your trading needs.
Thanks,
Team Lupa
we have been monitoring the Nasdaq and profit taking, but now it is time for a new outlook.
Despite the obvious of the Nasdaq and technology sector growing throughout the V-shaped first demand zone hit back in March - the Nasdaq has reached its all time high.
W formation:
The Nasdaq ceiling of 11,000 was tapped and now a W formation has occurred at the top - what happens after a W formation?
We have a sell to correct - as the extension will not be sustained.
Also conducting a Wave pattern [not shown] but applies - Wave 5 profits are now being completed.
Fibonacci -
Now what can we see - price is battling for the monthly close of -0.272% over extension - However, we can see price moving against this to close below. If price does not close below - await the next move on the August candle to verify further selling.
Monthly low - March - 1.00
0.00 point is the Feb high
So our technical view: as with the S&P, VIX
it is the same scenario - where price has begun to complete a 5 wave target and now needs to break the rising channel which is also the supply zone.
COT data -
Long Shorts Total %Longs %Shorts Net
Avg_13 13,697 9,948 23,645 58% 42% 3,749
Avg_20 13,598 9,699 23,297 58% 42% 3,899
Avg 50 14,545 10,071 24,616 59% 41% 4,474
Avg_130 14,566 10,037 24,604 59% 41% 4,529
Buyers keep looking to take out the stops of sellers but the shorts are creeping in now. let's await the 10,800-11,000 before assessing again.
Same fundamental view from previous posts apply. Nothing has changed.
A question, will the stimulus provide further support or is the show over? A reset is needed?
Many thanks for all the likes and support.
To any new followers, welcome and we hope we inform your trading needs.
Thanks,
Team Lupa
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