Pullback before next leg up
NASDAQ’s looking weak short term. We’ve seen multiple rejections from the highs, an M pattern forming on the daily, and RSI divergence creeping in on the daily — momentum is clearly fading. I already took profit around 21980. And a few small swings between the range since 3rd of June.
The rally off the tariff drop was sharp, but it feels mechanical. Bulls look tired here. You can see price is stalling — pushing into the same highs but getting nowhere. Classic signs of distribution.
That said, this isn’t the start of a full-blown bear market. The long-term trend remains bullish. AI investment is still piling into the U.S., tech’s still leading globally, and structurally we haven’t broken down yet. Some weakness is starting to show though.
But short term, I think we see a pullback. The Fed’s still sitting on the fence with rate cuts, which is creating uncertainty. Add that to the current geopolitical tensions, and there’s enough on the table to justify a temporary risk-off move.
If price breaks and closes above 21,860, I’ll reassess and potentially shift back to a bullish bias. Until then, I’m leaning short and letting price action do the talking.
My key downside levels:
TP1: 21,483 — scale out and protect.
TP2: 21,322 — potential bounce from this area.
TP3: 21,145 — structure starts to weaken.
TP4: 20,894 — bears starting to control and a deeper flush, I’ll reassess bias at this level.
SL @ 21850 on my second entry short
Short term: pullback likely.
Big picture: still bullish — but bulls need to reset before any next leg up.
