NQ Futures Update: Warning Signs Flashinghe Nasdaq 100 futures (NQ) is exhibiting several concerning signs that suggest a potential downturn could be on the horizon. Traders should exercise caution and be prepared for a possible wave of selling pressure.
Resistance Rejection: The NQ has recently encountered strong resistance. Multiple failed attempts to break above this key level could signal that sellers are gaining control.
Breakdown Below Support: A break below the red box support level could trigger a further decline. This would likely be accompanied by an increase in selling volume and negative sentiment.
Rising Volatility: An increase in implied volatility, as reflected in the VIX index, suggests growing uncertainty and fear in the market, which could precede a broader market sell-off.
Potential Downside Targets
If the bearish scenario unfolds, the NQ could potentially drop to the displayed support levels
While the NQ is showing signs of weakness, it's important to remember that markets can be unpredictable. A sudden shift in sentiment or unexpected news could quickly change the outlook. Traders should closely monitor price action, manage risk effectively, and be prepared for volatility in the near term.
Disclaimer: This is not financial advice. Please conduct your own research and consult with a financial professional before making any investment decisions.
