The Trap Was Always There – Volume Price Analysis on the NQ and XLK Monthly Charts
The Trap Was Always There – Volume Price Analysis on the NQ and XLK Monthly Charts
After a climactic session like today’s, it is easy to panic and throw in the towel. For readers of my X feed (and Anna’s), and for anyone who follows volume, the writing has been on the wall for some time. We have flagged this repeatedly in posts and live sessions: the tech rally that began earlier this year was built on hot air – a classic trap move designed by the insiders.
Evidence on the Monthly Charts
The clearest evidence sits on the monthly charts of both the NQ and XLK. Start with the benchmark candles of September and October 2025. Those two months showed solid spreads accompanied by relatively healthy volume. Price and volume broadly agreed. A modest increase in volume in October alongside a slightly narrower spread even suggested a degree of caution, as one would expect. Now compare those with the April and May...