Chart of the day

NASDAQ is reaching the newly formed uptrend channel support of 14600 after the rejection from the strong resistance of 16000. A bounce higher from here is required for another test of that upside resistance.

This is still viewed as completing the medium-term fourth wave pullback of the five waves upside if we get a bounce from here. A break below 14600 is now required for a downside reversal and an invalidation of the possible upside reversal. A break below this level will also confirm that the upside five waves are finished.

Long trade, you can open here with a stop loss just below 14600 if you are more prone to risk because this is not a clear direction. You can only open short trade entries in the case of a confirmed break below 14600 if you got stopped out. We favor the long trade entries as we expect an upside extension from this strong support near the uptrend channel support line and horizontal support.