I agree that we’re due for a bounce. Nasdaq is acting better than SPX. If you’ll avoid individual stocks which can gap against you, then you should be OK going long via ETF. I’d keep an eye on the tech mega-caps, as they’ll be the ones dragging the Nasdaq (up/down), and some of them don’t look that well. Just be ready to exit if there won’t be much participation across the board and if the QQQs would struggle at the first overhead supply. Short covering rallies usually blasts through the first overhead supply, if not then it is usually a warning sign.
Supply zone is a zone / level at which there was previously a cluster of institutional sell orders which created a supply of sell orders (certain chart pattern and PA reveal this). A first overhead supply zone would be the first major one that buyers would have overcome (the one that relates to one’s trading timeframe). In such zones there is more likely to be remaining previously unfilled institutional sell orders and therefore once price approaches such zone, then one can expect the same institutional players to step in again to execute the previously unfilled remaining sell orders, and thus creating an imbalance in the order flow and driving the price down. Reading PA at such levels (zones) then becomes the key in judging the order imbalances. At first glance it sounds like a concept of resistance, but it is not. More details are beyond the scope of a brief reply.
%% Good points + good post; + @ second glance sounds like resistance also LOL. With 200dma still going up/ + OCT nicknamed ''Bear Killer'', by Stock Traders Almanac , can easy drive the price up/main trend. Higher low on monthly QQQ also/ SPY up from 200dma. NOT a stock tip or prediction; SH\PSQ going down