$NQ: Failed Rally Is A Setup for a Breakdown

$NQ #NQ-mini futures #trading setup #Elliott Wave

It showed a bullish widely watched scenario where a test of the major support was supposed to be followed by a new rally in a wave (v) up targeting new higher highs of the 2023 year.

However, I put a lower red box and warned that the rally may fail at that lower red box despite bullish expectations of the majority.

In addition, I showed how a similar failed attempt to rally to a higher highs in 1929 led to a huge decline.

This is how that Daily chart looks like now:

NQ popped into the Red Box and got sold off strongly. Now once bears manage to break under the Friday low a waterfall type of decline may follow.

The best scenario for bulls is that we get another attempt to attack the lower red box. But I still maintain bearish bias. And if bears manage to test the red box again I would consider that as a short setup.

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