The major stock index futures broke down below the key uptrend lines off Monday’s lows in the overnight trading session, triggering an impulsive selloff back down to support levels with both the /ES (S&P 500) & /NQ (Nasdaq 100) E-mini currently testing those support levels in the pre-market session. The trendline breaks have taken /NQ down to the 7605 support with the next sell signal to come on an impulsive break below 7555 while /ES has fallen to the 2894 support with the sell signal to come on an impulsive break below 2894 & then the 2883ish support level.
NQ 60-min Aug 12th
ES 60-min Aug 12th
While I favor a break & resumption of the downtrend, as I like to say, support is support until & unless broken so at the very least it would be prudent to wait for those levels to get taken out with conviction after the 9:30 opening bell before adding to any short positions as the market tends to either rally or drop immediately following the open, quite often reversing the previous trend in pre-market trading.