Nasdaq NDX Weekly On The Cusp of Violent Breakdown
Chart 1
This shows the parabolic curve being violated and the neckline of a double-top formation
There is an evening star and doji at the top of the rally has price loses the parabolic curve.
The RSI is also breaking down.
Chart 2
Price is now below the weekly Bollinger Band during expansion. LMACD is turning down and risking a plug below a trend line
Chart 3
Ending diagonal is breaking down. A daily close below the 50-week MA is significant.
I will look at lower timeframes and look for ways to enter.
Realistically, based on these charts we want to wait for a close tomorrow afternoon. So the lower timeframes will let me see if there is a risk of a bounce tomorrow, or momentum is showing we will plunge more.
As I get lower and lower I can talk entries.
This moved fast and might keep moving fast, so some of you may want to market short if you know what you are doing and set up your own levels for stop losses and TP. You can do this if you don't want to wait for my setups and calls. I am trying to be a little more clear on this stuff due to some feedback.
So for now, this is how I would read
65-70% probability a short here is viable.
How I would go about recommending shorting here, I don't yet know.
Since it has potential to move fast, a market short is okay for those of you with experience and skill if you know how to manage risk.
I need to assess more before I give a trade setup. I still need to post some BTC updates too, so some of this clarity around trade setup I need to figure out where to put it in the order.
I am going to do a brief post on Bitcoin, then move to trade setups for the Nasdaq since I think it could be more profitable here.
Good luck!