Hello everyone. We have seen the Nasdaq form a new local top at the 22k area and is now heading back down.
There are many reasons why price is falling but remember this only a temporary sell off as the master trend on the highest time frame is up not down.
Today (Friday 20th June) is OPEX. $6.6 Trillion of options are set to expire today and the Max Pain level is 21,500. Price could drive there to render most options worthless.
Institutions and hedge funds have increasingly added short positions or are sitting on the side lines. Indicating lack of buying from the larger players for the time being.
Buying volume is lower than the selling volume at the top of this rally.
We have 2 weeks roughly until trump tarrifs are implemented and not many trade deals have been made.
Iran-Israel conflict with a possible US involvement.
FED is leaning towards a more hawkish approach due to tarrifs but says the US economy is still growing.
How I am looking at this for the near future. In the chart I have marked my entry, My SL, My Max TP and where I would take partials on the way down. I may also even scale in more if I see the opportunity.
Thanks for reading.
Trade active
Trade activated yesterday with average price of 21,654
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.