Markets move toward targets and when they get to the 3rd or 4th in the series, the profit-taking can be quite intense. So it was on Monday. The Nasdaq reached our final target at 4440 via a blistering rally shortly after the open. And that was all she wrote. An inverse fib projection suggests targets at 4385 and 4366.
The selling today was concentrated in the large caps, including the Nasdaq 100. The Russell 2000, however, closed up on the day. That’s bullish. So, if there is some follow through to the downside in the next few days, this is not likely to be a serious top in the NQ.
A Note on Volume Profile
The histogram on the left side of the chart shows the volume distribution in the Nasdaq futures for different periods of time. Key support and resistance levels are indicated by the peaks and troughs.
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