NG1! Nasdaq futures. What's next ?

The Nasdaq has been selling off in the last couple of trading sessions. On the Friday trading session it did however put in a stellar performance to cap what looked like a potential big down day. That initial move on Friday triggered many trailing stops and stop losses (I was stopped out of one of my holdings for instance), and buying pressure followed clearing the way for a bullish looking candle right on the neckline of a head and shoulder formation (bearish).

Although Nasdaq futures are currently trading down, previous experience has told me not to underestimate the power of a fake move (like the Friday move) right in the center of a decision point like a neckline. These moves can trigger a strong squeeze action on short positions (or long), so much so that the initial bearish pattern( head and shoulders) falls apart completely.

Caution is advised on big new positions at this point and I suggest to sit tight for at least 2-3 days to establish if the up trend or downtrend will continue.