Chart of the day

NASDAQ is testing a key upside resistance of 16000 which is now a major resistance for a continuation higher into a bullish extension. A break above or a rejection will determine a future medium-term direction. A break above could lead us higher to 18000.

I see this still as a pullback in the fourth wave before a continuation higher in the fifth wave. We need to see a clear confirmed break above 16000 in the coming days and weeks to support this count higher. Invalidation will come only upon a confirmed break below 14400.

Long trades could be opened upon a break above 16000 with a stop loss below 15400. Short trades should be opened in the case of a confirmed break below 15400. These are a key resistance/support level so use small sizes and tight stops.