Having surged more than 20% from the April lows, we could be nearing a turning point for Nasdaq 100 futures.
Bullish momentum is showing signs of shifting lower, while Wednesday’s inverted hammer candle—on a day when tech stocks were given every excuse to rally thanks to the soft U.S. inflation report and subsequent decline in Treasury yields—warns the rally may be running out of steam.
With Donald Trump talking about setting firm tariff rates for individual nations within the next two weeks, we’re already seeing signs of weakness in futures, bolstering the prospect for a three-candle evening star pattern being completed. Sitting in a rising wedge, directional risks seem to be skewing lower.
If the price breaks and closes beneath wedge support, it would create a setup where shorts could be established with a stop above Wednesday’s high to protect against a resumption of the bullish trend.
21436 is a minor support level that screens as an initial target, although 20800—where the price bounced strongly from on May 23—makes for a more appealing case from a risk-reward perspective.
A push and close above 21969—a minor resistance level established earlier this year—would invalidate the bearish bias.
Good luck!
DS
Bullish momentum is showing signs of shifting lower, while Wednesday’s inverted hammer candle—on a day when tech stocks were given every excuse to rally thanks to the soft U.S. inflation report and subsequent decline in Treasury yields—warns the rally may be running out of steam.
With Donald Trump talking about setting firm tariff rates for individual nations within the next two weeks, we’re already seeing signs of weakness in futures, bolstering the prospect for a three-candle evening star pattern being completed. Sitting in a rising wedge, directional risks seem to be skewing lower.
If the price breaks and closes beneath wedge support, it would create a setup where shorts could be established with a stop above Wednesday’s high to protect against a resumption of the bullish trend.
21436 is a minor support level that screens as an initial target, although 20800—where the price bounced strongly from on May 23—makes for a more appealing case from a risk-reward perspective.
A push and close above 21969—a minor resistance level established earlier this year—would invalidate the bearish bias.
Good luck!
DS
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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.
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.