The major stock indices, as well as those market-leading stocks covered in the previous video, all managed to successfully defend those support levels they were testing as the video was being recorded. Both /ES & /NQ are testing downtrend line resistance & either fail here (red scenario) or break out & rally for that marginal new high scenario (green) which is still intermediate & longer-term bearish but near-term bullish. I’d still give roughly equal odds on either with a slight bias towards the red scenario although I can say with a conviction that a short here at resistance with a stop on a solid 60-minute close above is certainly objective & offers a very attractive R/R.

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While one could also make a case to go long on a break above these trendlines, my preference would be to pass on going long as the upside potential appears very limited (~2-3%) compared to the downside risk, should the market suddenly reverse, especially with a large opening gap lower in the coming sessions. Additionally, the potential Head & Shoulders topping pattern is still intact on /NQ with the right-shoulder fully formed when the $NDX kissed the neckline at today’s lows.