Chart of the day

NASDAQ is ready for an extension higher to 16000. It is testing 15000 support of the fourth wave and a possible Inverse H&S formation.

This is still viewed as the fourth wave pullback of the recent five upside waves and consolidation could come to an end if we see a test and a break above 15600. If we get a confirmed break below 14700 an upside reversal can be invalidated and we could see a deeper pullback and a test of an important 14000 downside resistance instead of an immediate continuation.

Long trade, you can open here with the stops below 14900. We favor the long trade entries as we expect an upside extension in the fifth wave. If we see a confirmed break below 14900 we could revert to a short trade for the medium-term.