/NQ (Nasdaq futures has hit the top of the fifth price target zone (T5 zone) with QQQ once again approaching T4 in the pre-market session. I suspect the bottom of this target zone is likely to be hit shortly after or just before the open today. I’ve also added a new price target (T6) to align with QQQ T5, which bounce or not bounce, I still favor at this time (and will still most likely be turning to the longer-term swing & trend targets on the daily & weekly charts, if so). Previous 3 & updated 60-minute charts below.
NQ 60m Nov 10th
NQ 60m Nov 12th
NQ-60m-2-Nov-12th
NQ-60m-2-Nov-12th
NQ 60m Nov 14th
Likewise, QQQ is (once again) approaching T4 in the pre-market trading session, with elevated odds for a reaction there likely followed by another leg down to T5.
QQQ 60m Nov 14th
Keep in mind that the bulk of the price targets on these intraday charts of /NQ & QQQ have now been hit. As such, most of the meat on this “short-term” swing trade has now been sheared off the bone & it is no longer (IMO) objective to initiate a new short entry to try and milk that last little bit down. Even those already short might opt to either sit tight with stops in place (which should have been lowered since the initial entry and/or any of the bounce re-entries, such as earlier this week), if holding out for the next & final near-term targets on this short-term swing trade… depending on your trading plan, of course.
Active traders can certainly try to game a bounce, such as the potential bounce scenario highlighted on the charts above although keep in mind that the closer we get to the final targets, i.e.- where we are now, the odds start to increase that any counter-trend bounces might get sold into quickly & earlier with little, if any, reaction off these nearby support levels.
Longer-term swing & trend traders that shorted and of the recent sell signals on the daily charts and/or weekly charts (primary trendline breakdown and/or backtests on QQQ; bearish engulfing candles on SPY & QQQ weekly charts; SOXX primary uptrend line breakdown & backtest, etc..) might opt to sit tight with a more liberal stop in place, awaiting the next potential sell signals on the QQQ, XLF, & the market-leading tech stocks that have been highlighted in recent videos before adding to a starter swing/trend short position.
Also, keep in mind that today is Friday and, as such, any positions taken home today entail an extra two days of overnight risk. Finally, we also have the undisputed King of Everything (sentiment, AI bubble, largest-weighted component in the $SPX & $NDX, etc…) reporting earnings next week. As such, best to wait until NVDA is out of the way AND/IF those next sell signals are triggered before going to heavy on a longer-term swing or trend short position. Ditto for the $VIX long trade.