With the Nasdaq 100 trading at important resistance and losing momentum, it may be time for a pullback.
In my opinion, I think traders should be cautious here and new positions should await confirmation Shorting against a tight stop just above resistance can work for skilled tactical traders.
In any event, I am beginning to think that the momentum divergence we are seeing may soon give way to a pullback. The magnitude of that pullback cannot be measured or calculated just yet. How the price action plays out in the next few days should determine if this will be a pullback of any consequence.
The author or his firm have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
