NQM2020
NASDAQ QQQ Ascending Channel UpdateFirst, I wanted to say that anyone who is using the QQQ chart to trade NASDAQ is at a huge disadvantage.
The futures chart NQM2020 has much cleaner price action and the trend lines are much better respected.
As I am sure many have heard, there is all of this talk about the market ready for a C wave down after this B wave rally. While this may be true, the chart is still bullish. NASDAQ leads the market. If NASDAQ goes up, other indices will follow as tech is what is driving this market higher, and NASDAQ is heavily weighted in tech.
This ascending channel is still intact and shows more moderate growth compared to the previous rising wedge that was nearly parabolic. Some may see this as a distribution phase, calm before the storm. Regardless, it's bullish until this channel breaks. The purple line shows NASDAQ is retesting a breakout of a local downtrend.
If this channel breaks, you can short on the break or wait for the retest. Either way, keep your stops close and remember you can always enter the market again if there is a wick that goes against you. Volatility is picking up which indicates that we may see an increase in whipsaws.
