NQ1!, Approaching Resistance

20 jan. 2019Here is a complete dissected view of the Nasdaq futures market action from the recent all time high to the recent low. This is how I process any instrument though the market action view. It works well on any timeframe. Whether you are a day trader or a swing trader. Back to Nasdaq. I have marked important levels to watch. The bulls remain in a firm control above 6400. The intermediate bias remains Neutral-Bullish. The short term bias is bullish. However, the price is approaching a strong resistance where I expect a tradeable reaction. A potential pullback to 6650 is the first target. The second target is 6520. A low timeframe 5 or 30 mins could be use to spot the rejection and the beginning of the pullback.

01/20/2019

21 jan. 2019

Kommentera

A short session due to MLK Holiday in the US. We can observe that the trend line continue to provide support for the up trend. The price is caged between two trend lines. Some resolution is expected soon. The earning season is not over and Apple will be reporting by the end of January. This is usually a market mover especially for NQ. Another factor to consider is the Feds balance sheet unloading. This is really a game changer recently. Found this schedule on the net. Will be on the look out:
zerohedge.com/s3/files/inline-images/QT calendar nomura jan 19 2019.jpg?itok=MD0kESLk

22 jan. 2019

Kommentera

The price pulled back off the important trend line and broke the upside trend line decisively during the RTH session. Sellers were dominating the entire session. Despite some attempts from the buyers every rip was sold. The price overshoot the level 6650 marked on the chart but closed right there. From a big picture perspective this is a very shallow pullback. I won't be surprised if tomorrow we will see an opposite action from the buyers trying to get above the broken upside trend line or at least to retest it. My thinking is the buyers need to hold 6650 level in order to regain a short term control. This is an aggressive support though. Loosing it would open the door for more selloff. We need to see whether this is one day shakeout or the beginning of a deeper pullback which will be reasonable considering the recent up move.

01/22/2019

24 jan. 2019

Kommentera

A very balanced day, which provided a few opportunities on both sides. While looking at the daily and monthly market profile today's action comes to no surprise. The price got stuck between December and January point of controls. Today's RTH profile is a gaussian shape with a narrow daily range. Typically, a resolution comes in the following day. I anticipate an extension either upside or downside. If upside, then the price will target the recent highs and retest the broken trend line. The down side may go to 6530-40. However, if a strong momentum is seen that support may not hold but a bounce on a first test would be normal.
01/24/2019

26 jan. 2019

Kommentera

A second test of the downside trendline today. Out of the all indices the NQ was the strongest today. Even though it finished in green from the market structure perspective nothing has changed. When day trading NQ I usually watch NYFANG index. Often, it moves in sync with NQ, but when divergences are spotted those are the early signs to pay attention. Next week the heavy components of the Nasdaq are due to report. There is also FOMC meeting announcement on Wed. The CME watch tool shows a high probability of no rate hike. Nevertheless, usually a volatility spike happens after the announcement and during the press conference.