S&P 500 breaks below yesterday's low while Nasdaq holds higher, with weak VIX suggesting a quick squeeze back up. Wait for the S&P to retest and close above that level, then go long Nasdaq to catch the relative strength.
On the Nasdaq previous day low. A nice high probability setup looks like this, where you have the S and P breaking below the lows with momentum, whereas Nasdaq is making a higher low. You also have VIX showing relative weakness. So not only do you have relative weakness out of the vix, which implies that the downside pressure on the S P is going to be short lived under the previous day low, but you also have relative strength coming from the Nasdaq where these prior day lows were never broken. So this has a very, very high probability to end up resulting in a squeeze back up to the upside. What that would look like from an entry point of view is you would want to wait for the S and P to recapture back above previous day's lows. And then what I like to do ideally is to long the Nasdaq as it was showing relative strength.
