The bearish rising wedge patterns that were recently highlighted on the 60-minute charts of /NQ & /ES broke down in the overnight trading session. Will these wedge breakdowns prove to be the real deal with the start of the next leg down to new lows or will my scenario from Friday’s video scenario play out with these breakdowns proving to be a bear trap followed by rally today and into tomorrow?
While we won’t know the answer to that question until later today, it still appears to me that a long entry here on the initial thrust down below the wedge with a relatively tight stop below (~1%) offers an attractive R/R for a potential swing trade up to /NQ 6553 or /ES 2593 (or any of the $NDX tracking ETFs such as QQQ or TQQQ).