Bearish outlook, bullish short term?
On the monthly we can see a pretty nice bearish Wolfe wave wedge formed, with wave 5 already making its peak or swing high. This Wolfe wave is now be considered in play and looking for its target. ( I know im posting weekly chart ) BUT... We are coming to a crucial support level that we have not yet tested. I would not put all my marbles on it, but I would not be surprised to see a decent reaction off of this level. It is a possibiliy. It is not uncommon to see wave 5 of a Wolfe wave form the head to a head & shoulders or inverse head & shoulders pattern.
My thought is that crucial support becomes neckline to a bigger pattern head & shoulders. The right shoulder will create a bull trap for bulls who think the NDX will go on to make another ATH. When NDX price action shows a lower volume and a weakness to make a new ATH. Market direction will become even more obvious. And bulls and bears will come into more agreement with each other of where the market is headed. If NDX does make a move up to or near the left shoulder, it is possible we could see a short term bounce with Bitcoin and the crypto market as well. Please comment your thoughts
My thought is that crucial support becomes neckline to a bigger pattern head & shoulders. The right shoulder will create a bull trap for bulls who think the NDX will go on to make another ATH. When NDX price action shows a lower volume and a weakness to make a new ATH. Market direction will become even more obvious. And bulls and bears will come into more agreement with each other of where the market is headed. If NDX does make a move up to or near the left shoulder, it is possible we could see a short term bounce with Bitcoin and the crypto market as well. Please comment your thoughts
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