NQ has maxed out a set of price channels to its orange and silver megaphone tops using a system from The Neely Method for counting price channel waves plus traditional methods for drawing rollover channels. Now NQ has to have started a top for the move out of the July 4th low.
But you can’t short yet. Although you will occasionally see a very small fast top at the end of maxed out price channels, a protracted megaphone top (green scenario) is more likely and something like a rising wedge or rising megaphone top (pink scenario) would also be typical.
The pink scenario could also change the potential H&S on the chart (purple scenario) into a rising wedge top with another new high after the pullback to the orange megaphone VWAP. You never know what kind of topping pattern you have until it completes and actually breaks out.