BIG PICTURE – NQ – Midweek
Italian referendum behind us and markets digesting the news but nothing too severe. Indices continue to roll to all time highs and it appears some confidence in the economy taking hold. Though the pundits and Z-Vals are screaming the end of the world. After the two day sell off last week on the NQ, the index has found some footing and making it’s way back upside. Not much of a run away rally, but keeping price in a tug of war fashion as to not make it too easy for the crumb traders. Thursdays ECB meeting and December contract volume starting to diminish by end of week may still bring some volatility. A long journey up to the high of last Thursday’s sell off. But hey, it’s the NQ which can roar mighty strong on any given day.
As always, leave your bias at the door of where you think the market should be, and watch the charts in front of you.
**Disclaimer: Attempting to determine which way a market will go on any given day is merely a guess in which some will get it right and some will get it wrong. Being prepared in either direction intraday for the strongest probable trend is by plotting your longer term charts and utilizing an indicator of choice on the lower time frame to identify the setup and remaining in the trade that much longer. Any chart posted here is merely a snapshot of current technical momentum and not indicative of where price may lead forward.
NQ – Nasdaq Futures
Daily chart holding under the 50ema after unable to break upside resistance and on a pullback form value area is a match for the 4 hour chart which is just sitting above value. 4796 is the 50% pullback on the drop down from last Thursday (12.1) high in which we have been unable to break upside for two days. A breakthrough to the upside to 4882 would be an ideal match on both charts but must be met on the resistance of the hourly chart at the 50/144EMA cloud. 4814 -4824 may be the ideal place for a stall in price action. In order to get to the higher levels, price momentum needs to hold above the hourly cloud and then break through the daily 50ma. If resistance on the hourly holds, look for the retest of the 4726-4746. Best indicator? Intraday chart below.
Upper Zone: 4844 – 4483
Value: 4684 – 4753
Lower Zone: 4492 – 4531
Nearest Open Gap: 4610.75
Upper Zone: 4844 – 4864
Value: 4746 – 4785
Lower Zone: 4668 – 4688
Following the potential trends in either direction above on the higher time frames, will show up first on the lower charts as seen below. Range charts near resistance and upper levels on the right need to breakthrough which currently are in indecision status. 15m chart reveals a stall at the high end of value area. Watch for the fade on the range charts back down to 73-78 as a low which would still keep us in value on an hourly. If able to break above in TREND on the range chart, levels will be reset and look to 95-97 as the first line of resistance with a high of potential 4802.
As always, be ready in both directions. trend will reveal itself on Heikin Ashi bars and proper trade management will keep you in the trend.
Price action pulls back on the range charts after a reset of the levels and fades off the resistance level down to support in the zone as seen above. 15m follows suit as well by the levels. Hourly chart pulls back and 50/144ema cloud maintains resistance. HA bars identifying trend on the range chart to keep you in to the lows. Decision time today. We either break support here and reset lower levels to grab lower on the higher time frame or maintain support here and grab those upper levels mentioned above. We can always chop as well. Let the HA bars guide the trend.