NQ - bulls still hope to push to a new all time high
When you look at the chart try to look through eyes of each competing camp, bulls and bears.
If you are a bear you definitely like the fact that support has been finally broken.
You also like that bears managed to press NQ under the upward sloped green channel. That is a good sign that the trend has changed.
NQ 240 min chart updated at 9-10 AM on 8-19-2021
Now look at the structure through eyes of bulls. We can assume that they have not given up the ghost. I mean they still consider that move down as a pullback.
Bulls would say that nothing dramatic has happened. They would say that as long as NQ holds over 14,445, the low of the previous pullback in wave iv down, we can treat that decline as a corrective subwave b down of wave v up.
That is actually good news for bears. Because bulls would try to push higher again. And the moment of truth will be when bulls manage to produce a corrective looking a-b-c up bounce making a lower high instead of an impulsive rally making a new all time high in subwave c of wave v up they expect.. This is when fear will finally kick in.
NQ 240 min chart updated at 9-10 AM on 8-19-2021
Now lets combine two of those points of view into one feasible scenario I favor.
Below I show again how bears count NQ. They believe NQ has made a lasting top. Off the top the first a-b-c move down violated the micro support. It is reasonable to expect that the bulls try to turn it back up, pushing NQ back up over the broken support in hope to produce another impulsive structure. Bears believe that bulls would fail ending up with a partial retracement of the preceding decline shaped as micro a-b-c.
The key is the structure of the next move up. Any corrective looking a-b-c up bounce would be a short setup.
NQ 240 min chart updated at 9-10 AM on 8-19-2021
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