NQ Possible Bull Flag 8/15/2020
NQ at the daily view.
It seems the NQ is revealing more of its hand. Taking a bigger picture look, the NQ is consolidating and bull flagging.
Usually, the distribution phase ends near the end of summer. We are approaching that soon. There are still Robinhooders and FOMOers who are getting in on the tech hype. Institutions were selling to take advantage of that hype. That's why the Dow and Russell have been gaining ground. However, the market breadth has been getting narrower lately. Weaker market breadth means that breakouts become more unhealthy.
Liquidity is still pretty high. Any pullback from the NQ in the short-term would most likely be part of the bull flag. As long as the NQ doesn't break the upward channel, then it's merely a consolidation. However, at the weekly, view, there's now limited upside potential to the NQ as weekly momentum is slowing down.
Bigger time frames will always trump smaller time frames.
It seems the NQ is revealing more of its hand. Taking a bigger picture look, the NQ is consolidating and bull flagging.
Usually, the distribution phase ends near the end of summer. We are approaching that soon. There are still Robinhooders and FOMOers who are getting in on the tech hype. Institutions were selling to take advantage of that hype. That's why the Dow and Russell have been gaining ground. However, the market breadth has been getting narrower lately. Weaker market breadth means that breakouts become more unhealthy.
Liquidity is still pretty high. Any pullback from the NQ in the short-term would most likely be part of the bull flag. As long as the NQ doesn't break the upward channel, then it's merely a consolidation. However, at the weekly, view, there's now limited upside potential to the NQ as weekly momentum is slowing down.
Bigger time frames will always trump smaller time frames.