Nasdaq sell - if price closes below -0.27 Fib extension

23 jul 2020

Hello traders and analyst -

we have been monitoring the Nasdaq and profit taking, but now it is time for a new outlook.
Despite the obvious of the Nasdaq and technology sector growing throughout the V-shaped first demand zone hit back in March - the Nasdaq has reached its all time high.

W formation:
The Nasdaq ceiling of 11,000 was tapped and now a W formation has occurred at the top - what happens after a W formation?
We have a sell to correct - as the extension will not be sustained.
Also conducting a Wave pattern [not shown] but applies - Wave 5 profits are now being completed.

Fibonacci -
Now what can we see - price is battling for the monthly close of -0.272% over extension - However, we can see price moving against this to close below. If price does not close below - await the next move on the August candle to verify further selling.
Monthly low - March - 1.00
0.00 point is the Feb high

So our technical view: as with the S&P, VIX
it is the same scenario - where price has begun to complete a 5 wave target and now needs to break the rising channel which is also the supply zone.


COT data -
Long Shorts Total %Longs %Shorts Net

Avg_13 13,697 9,948 23,645 58% 42% 3,749
Avg_20 13,598 9,699 23,297 58% 42% 3,899
Avg 50 14,545 10,071 24,616 59% 41% 4,474
Avg_130 14,566 10,037 24,604 59% 41% 4,529

Buyers keep looking to take out the stops of sellers but the shorts are creeping in now. let's await the 10,800-11,000 before assessing again.

Same fundamental view from previous posts apply. Nothing has changed.

A question, will the stimulus provide further support or is the show over? A reset is needed?

Many thanks for all the likes and support.
To any new followers, welcome and we hope we inform your trading needs.

Thanks,
Team Lupa