I've been watching this NQ setup for a couple of weeks now ever since it broke below its major uptrend from 2023. That was a big move down, but after only a couple of weeks, NQ is back for the retest just like I was hoping for. There are many things that make this a fantastic setup in my eyes, but the risk/reward is also great because you are entering right on the level if it breaks against you, you can exit quickly with minimal damage.
On the other hand, if this works and it ends up being a major top on NQ, you could hold comfortably for months and watch the cash flow in assuming the trend continues, which is what stocks usually do.
TLDW: Multi-year pattern breaks and retests on the major averages and many stocks including the mag 7 and semis. Everything is seemingly at major multi-year trend tests at the same time, so I expect fireworks here. My bias for now is short, but we'll find out soon enough if I'm going to need to take a loss and flip long or not. Remember, a multi-year pattern can take weeks or possibly months of consolidation before a breakout, it doesn't always happen in a day or a week.
We may have some big red days, but this trade is more about the belief that regardless of short term fluctuations in price, we will trend lower for the foreseeable future. We'll see how this one turns out.