$NQ: Watching A Short Setup

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$NQ #NQ-mini #trading setup #Elliott Waves

I consider a corrective looking overlapping pullback off the Friday morning low as a corrective wave -b- up that should be followed by another leg down targeting 19,900.

There are two micro scenarios. The bullish micro scenario allows bulls to make one more push higher making a lower high:

NQ-mini 15 min chart

However, the bullish scenario did not get any confirmation overnight. We did not get a rally. As you can see, NQ is sitting right at support of the blue trend line. Bulls need to start pushing NQ higher in a subwave c up. The very first resistance will be 20,809.

There is a decent bearish alternative scenario:

NQ-mini 15 min chart

The bearish scenario counted the Monday rally as a subwave c of a corrective wave -b- up.

Note the declining red trend line. Bears need to push NQ under that line. This short setup will be alive as long as bears hold NQ under 20,730.

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