The Nasdaq100 (NQ) sharply reversed an intraday dip yesterday, forming a daily Hammer just above the psychologically key 15k whole figure level. Significantly, although NQ could nudge higher this week towards upchannel resistance (on the weekly chart), NQ is incredibly overbought on a monthly chart, where yesterday's brief break below the ascending wedge support (on the daily chart) dramatically increases the odds of a retest of yesterday's low in the next few days, and a test of the July low in the next week. Volatility will surge today following the US Retail Sales data at 830am EST, Powell's speech at 130pm EST and again Wed after the FOMC Minutes. Except for the weekly Stochastics which still slopes up, the weekly and daily RSI, Stochastics and MACD are tiring or steadily sloping down. I am flat after getting stopped out yesterday and am looking at re-entering short in the red zone (of the daily chart), targeting the green zone for Monday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter.
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