Being short. Cleared more than 4% on the index funds and TWM positions today. A very nice day indeed. I held onto shorts expecting more downside in the near term. The following charts demonstrate why I think so.

I don’t think many people see the falling wedge pattern developing yet. The wedge intersects somewhere late November, but price never makes it to the intersecting point. My guess is that we fall within this wedge until somewhere to the first week or two into October testing or breaking the low made on August 18th. From there we’ll likely get the end of the year rally because the boys on Wall Street have to get paid.

There have been several little island reversal patterns within the last two months on the NDX, however this one is the most developed, occurred at the 50dma and broke/closed below it, upward trendline from August low was taken out as well. 200DMA test for NDX is a minimum at this point imo.

Thanks for reading

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