NQ - Daily / 4X Negative Divergence - Break @ 1 Positive @ 26/12Traders should Observe MACD Break. It is unusual - while sitting near lows
it has been unable to clear the Signal Line for greater than one month.
Crossing the Signal Line (White Line) would be a Buy SIgnal. This is why
the NQ sold off the last 30 Minutes Thursday. Insts knew this presented
the potential for a Counter-Trend - we indicated based on VX Price action
there would be an 82% probability the Equity Comkex pulled back to ST Supports.
It is an unusual break as the overall structure is very weak.
MACD is a Trend-following momentum indicator - MACD is calculated by
subtracting the 26-EMA from the 12-EMA.
We Prefer the 21/13 for quicker response to breaks as it provides more
of an Edge for retracements - suggest observing those more accurate
settings.
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Price has two Overhead Trendlines which are the Real TLs.
1/5 TL and the 3/5 TL as they have a POS (Point of Convergence) for which
the intersect is identified. Duration Intersects are very powerful Resistance
and the why.
The Level sets a Clear SELL opportunity.
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Here's the larger issue.
The Monthly Timeframe remains in an extraordinary Parabola and will until
we see this range from 15,500 to 16,500 broken. The MACD is as high as it
has been and has a Positive Slope.
it is supportive but can curl to flatten out at elevated Levels.
The Flip Side of this: 8/8 completed Last Month on the Largest Count.
It is presently 1/X or the point of indecision.
The NQ has not had an 8/8 Monthy Count going back years.
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The highest Probability is the NQ Reverses and performs the Larger 4/5 Sell we
have been patiently waiting for... This is how we are going to Trade the Setup.
16771 is the MAR CT Limit to avoid an Overthrow, and frankly, even if it did, it can
reverse and place a large Dark cloud over 8/8 as it has done in the past on
shorter Counts.
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The Salient point here is although there are the Potentials for Higher, the higher
the potential is Price will move back to test 14,000.
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Merry Christmas / Happy Holidays Everyone
- HK
