NQ - has a clean completed structure of the rally in wave ( iii ) up.
This morning at 9-25 AM I wrote:
“NQ has a nicely completed micro structure of the final -a-b-c move up. I will short it once it gets closer to 9,600 – 9,618.”
NQ topped at 9,609.50 at 10-45 AM. In my Premium Chart at 10-44 AM I reported several trades where I bought SPY and QQQ puts expiring next Friday. It turned out to be the ideal entry into a short position. By close those puts went up by 50%.
As long as NQ holds over that Green uptrend line bulls are strong.
In theory they can even squeeze another push higher to make one more higher high.
In this case I will start buying SQQQ, x3 bearish ETF.
NQ - 15 min chart updated at 10-30 PM on 2-11-2020
Below you can see a beautiful clean completed structure of wave ( iii ) up by Nasdaq Composite index. That index covers all stocks listed on the Nasdaq Exchange. The stocks traded on the Nasdaq Exchange and listed on other Exchanges are not covered by the Nasdaq Index. In contrast, NASDAQ 100 index comprises the top 100 strongest stocks on the Nasdaq Exchange.
Look where ( c ) of ( iii ) topped, right at 123.6% of ( a ) of ( iii ).
In addition I like how Nasdaq Composite ( symbol $COMPX ) went up only to retest that Green Trend line from below
That is a great sign of weakness. The strong momentum is gone.
Remember, the momentum peaks in -iii- of ( c ) of ( iii ),
Any following highs generate negative divergence.
The first target for the move down will be the low made by the minor wave -iv down made at 9,088 on 1-27-2020.
For NQ the corresponding level would be 8,925.
Nasdaq Composite - 30 min at 10-30 PM on 2-11-2020
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