Obviously the weakest sector right now is tech, and I want to point out a couple of technical features on $NQ‘s chart.
- Note the important prior high it is presently at. That may be supportive.
- The structure, at least as it stands now, is a bullish wedge, complete with divergent lows on the RSI.
I continue to believe that even at a bare minimum, we should get an enormous rally of duration soon, if not even a more permanent low.
Sentiment alone should prevent us from being able to go much lower, unless we are genuinely in a bonafide crash (but I see no systemic risk big enough to support that thought). I have been retweeting much of the bearish stream of consciousness to help those of you who don’t follow as many people see just how near-universal the bearish sentiment is here. I’ve never seen anything like it, not even in the COVID crash.
If we do end up going much lower, I apologize for not calling for that directly, but I’ve never seen such a one-sided directional bias and discipline requires me to want nothing to do with it.
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