A Trifecta of Resistance
The 8 month long downtrend is still intact, previous support is acting as resistance, and the current rally looks like a classic bear flag.
( I use 4 hour candles on /NQ futures opposed to the daily candles of QQQ as I believe it generates a more complete picture of price action.)
I am sharing this chart as I am conflicted on how to approach the market today. Q2 earnings are better than expected with big tech gapping up 5-10% after hours. I can feel the optimism & the FOMO to buy the dip but then I am trying to remember how brutal bear market rallies can be. That's why I am looking using technicals as a tool to gauge where we are in the overall market recovery. My current read is that in the short term the "easy money has been made" and the market will struggle to go much higher.
Very nice chart. Recent run up based on investors closing shorts / FOMO. You can see people get excited everywhere on social media. Inflation hasn’t left us and the US just entered a recession! Not looking good. Landing will never ever be soft.