Chart of the Day - Tuesday, December 10, 2024

🏆 Today's Chart of the Day was shared by Yuriy Matso (@yuriymatso).
 

• Last Tuesday, Nasdaq 100 Futures ($NQ_F) cleared their post-election highs before rolling over into a potential Head & Shoulders Top. While $NQ_F violated the neckline at 21,444 today, it quickly found support at the post-election highs (21,340). 
   
• Selling could intensify if the Nasdaq breaks its post-election high, as this would confirm a Failed Breakout. However, if the Nasdaq reclaims the neckline at 21,444, it will mark a Failed Top. 
   
• Failed Tops can be very bullish, but futures must reclaim the neckline at 21,444 before invalidating this potential top. 
   

The Takeaway: If Nasdaq futures drop below 21,340, the bulls will be trapped. However, if futures reclaim 21,444, the bears will be trapped.