VXN (NQ's VIX) About to Make a Decision
This is the VXN at the 4 hour.
The VXN's minor support is still holding much stronger than I anticipated. I was expecting the second support.
We are nearing the end of this wedge. The VXN is warning that a pullback may be imminent in the NQ. The NQ might get one last pre-earnings hype bounce. However, the VXN is providing clues that a pullback will happen shortly afterwards.
Institutions are also selling tech shares while Robinhooders are still buying the hype. As stated before, we have seen NQ's top for the rest of the summer back in July 13th. With other sectors being highly undervalued, I don't think the NQ will get back up much higher. The VXN is priming for another volatility jump.
That said, I am not expecting the volatility jump to be like March 2020. Liquidity is still pretty high and will most likely keep a cap on the NQ's pullback. However, if the NQ breaks below 10,000, then we may have more downside ahead.
The VXN's minor support is still holding much stronger than I anticipated. I was expecting the second support.
We are nearing the end of this wedge. The VXN is warning that a pullback may be imminent in the NQ. The NQ might get one last pre-earnings hype bounce. However, the VXN is providing clues that a pullback will happen shortly afterwards.
Institutions are also selling tech shares while Robinhooders are still buying the hype. As stated before, we have seen NQ's top for the rest of the summer back in July 13th. With other sectors being highly undervalued, I don't think the NQ will get back up much higher. The VXN is priming for another volatility jump.
That said, I am not expecting the volatility jump to be like March 2020. Liquidity is still pretty high and will most likely keep a cap on the NQ's pullback. However, if the NQ breaks below 10,000, then we may have more downside ahead.