NDX entered into this correction all of a sudden at the beginning of October once wealth preservation suddenly became a thing and the realities of interest rates began to sink in. This strengthened the US dollar.
While I think its possible for the market to continue its selloff against the USD, time looks to have run out to complete this downtrend channel and so its possible we could have a rebound situation as the market consolidates.
Here's the daily snapshot:
We can see that we are trading below the EMA200 which gives us an idea we are oversold. The volume profile is also indicative of a impending reversal.
The trade setup here is countercyclical as we have the EMA50 trading below the EMA200. We want to try to avoid trading between the 0.382 and 0.618 of the swing.
***This is not investment advice and is simply an educational analysis of the market and/or pair. By reading this post you acknowledge that you will use the information here at YOUR OWN RISK
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We spoke a bit too soon... still trying to find support.
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Ok! Here's the rebound and now we are at the "make it or break it" level...
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Consolidating...
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Bounced!
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YES!
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Consolidation time.
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Trend resumption?
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Once this candle closes the trend resumption will be confirmed.