Early buying, a spillover from today, followed by selling due to very overbought conditions on the 60s. This will be a noticeable selloff, worthy of shorting. I expect the Naz to follow this pattern as well. Watch for it, play safe with tight stops if you’re day trading.

The Naz in the process of forming an inverse head and shoulders pattern, but it must complete the right shoulder prior to breaking out (the selloff), Also, the breakout will require this selloff to garner enough steam to break the neckline of the pattern.

Don’t let the selloff shake you. It will be similar to the MMs shakeout this morning, they tested the resolve of traders in order to bulk up with cheaper inventory.

-ernie

thanks Ernie. That seems to be the consensus with GS as well for tomorrow morning after earnings. Since we have a pretty good correlation with Goldman these days for some reason, seems like your scenario is very likely.

what do you think, will the sell off go as low as 173 ? or lower. before going up ?

I think it will at least go below the 50-day moving average, currently at 175.21, so yes, it’s possible it could go to 173. The 50 is always a key level that MMs like to play fast and loose. Produces max effect.

-ernie

Isn’t there an Intraday topic for this?

Topic locked