NQ Channel 7/22/2020

This is the NQ at the 4 hour view. Liquidity has increased substantially according to the data. As a result, I had to move my buy zone up accordingly.

Institutions have re-entered into the NQ. That's where those big red candles came from. They'll let it run up, then pull the rug. New traders and Robinhooders are hypnotized by the allure of big tech and biotech. So they keep buying shares. Not to mention, how many shorts are trapped below? How many bears got excited to short when they saw 10,000? I would say a lot. That's why I'm counting on profiting off the bounces on the way down. Profit off the short covering rallies.

Still waiting on the NQ to reach my buy zone. Most of the bounces above it have been minimal. I'd say, why babysit a trade when you can count on a high probability bounce that's bigger? It's less stressful than managing 40-50 points at a time.

NQ looks like it's bull flagging. If the bears don't bring this down another 200 points, then more shorts are going to get eaten alive. VXN is suggesting that it wants to test a new support. It looks like the NQ will be calm for just a little while longer.