NQ: Macro Update: Looks Bearish

#trading setup #macro #daily #corrective

Off the October low Nasdaq produced a wek (a) up, (b) down, (c) up bounce that managed to retrace only 50% of the preceding decline labelled wave A down:

50% retracement fib is a typical target for weak rallies in bear markets.

The fact that the move up has been following a clean corrective three wave up structure is a strong argument in favor of that bearish scenario.

Undrer that bearish scenario, upon completion of that bounce we should expect either a three wave or a five wave decline in wave C of (Y) down.

On a 30 min chart below we can see a completed (a) up, (b) down, (c ) up corrective structure:

Break back under 11,728 would trigger a short “failed breakout” setup and open teh door for decline to 11,355.

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