Short Nasdaq Index before Next buyback
After amazing earnings from the companies , if you can call them that, Nasdaq is running out of options to keep going up. The number of buyers before earnings and now has reduced drastically and I am observing Nasdaq index getting rejected at the top Fibo levels. Even though earnings are yet to be finished, with the top guns finished with their earnings (FAANG), I think its time for nasdaq to pull back after some profit taking, before going back up again.
China USA trade deal might fail as well, even though i was quite optimistic that it might not, but seems like the China expects a lot more from USA , including removing the tariffs and not just cancelling the future tariffs. Which USA might not agree to and with stock markets at record levels, trump might take that risk instead of backing away in "shame".
That's the psychological background to this short as well.
Technicall its overbought on many levels and needs to correct, if not, it cant sustain this rise to heavens.
Fib levels to look: Fibo 0.236 the first support around 7980 levels.
Short Nasdaq 8220
Tp 7980
If the trade deal falls apart then expect much worse corrections to around Tp2 7696, 7400s
But i dont imagine markets falling below these levels until next earnings season, unless if FED goes haywire and tries to increase the interest rate which it wont unless if the inflation rises close to 2%. most probably wont happen
China USA trade deal might fail as well, even though i was quite optimistic that it might not, but seems like the China expects a lot more from USA , including removing the tariffs and not just cancelling the future tariffs. Which USA might not agree to and with stock markets at record levels, trump might take that risk instead of backing away in "shame".
That's the psychological background to this short as well.
Technicall its overbought on many levels and needs to correct, if not, it cant sustain this rise to heavens.
Fib levels to look: Fibo 0.236 the first support around 7980 levels.
Short Nasdaq 8220
Tp 7980
If the trade deal falls apart then expect much worse corrections to around Tp2 7696, 7400s
But i dont imagine markets falling below these levels until next earnings season, unless if FED goes haywire and tries to increase the interest rate which it wont unless if the inflation rises close to 2%. most probably wont happen
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.