NASDAQ has been rejected from the top of the rising wedge 17200 and is now reversing lower below a previous historical high 16800 indicating that five waves of upside are finished and we will see a swing lower in a wedge.
How to trade this?
This is an excellent opportunity to go short or trade put options with a good risk to reward and build a good short trade position as the potential for a pullback is huge and there is a lot of space to fill down to 15200. A break below 16500 a short-term uptrend line will accelerate the downside. You can take the short trade with the stop loss just above 17000 to target 15200 and possibly lower.
Â
Â