Last week, I showed a setup in NDX, QQQ, and QID that was allowed by Elliott Wave Theory, when NDX finished 5 waves up to new highs, but the Nasdaq Composite failed to confirm. Monday, I recommended that breakeven stops be used on the short QQQ and long QID trades, or that exits should be made. For those that are still holding shorts, EWT suggests that exits should be made now, since a 5 wave decline is now visiblly complete, or nearly so. Re-entries can be made 50% back, using NDX highs of last week as stops.
QQQ has strong support for a bounce around 54.50 +/- 0.50, and a retracement target back up to 57.50 +/-.50 to use to re-enter shorts. 59.75 should be used as protective buy stop on re-entered trades....116 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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