/NQ (Nasdaq 100 future contract) is breaking out above this bull flag pattern with the 7722 resistance level just above followed by 7812 + the downtrend line. Should the bull flag breakout fail, with /NQ reversing around the 7722 R level & then falling back below the flag, that would open the door to the next wave of selling while a solid & impulsive break above the nearby R levels on both /ES & /NQ would increase the chances of the flags playing out.
NQ 60-min Aug 9th
I favor the bearish scenario, which would be a failed breakout above these flags, followed by what would likely be an impulsive selloff as failed breakouts are often followed by sharp moves in the opposite direction once the failed breakout has become apparent to all. Of course, I can’t rule out the bullish scenario so watch for an impulsive break above yesterday’s highs on SPY & QQQ which were the key resistance levels & max. bounce targets that were recently highlighted. I’ll follow up with SPY & QQQ charts soon either in the comment section below or a new post.
ES 60-min Aug 9th