Recap NQ spiked way higher on Tuesday open after holiday Monday. Yet it dropped all the way back down to close the gap below. So as oppose to the normal consolidation around the previous week close, the price moved one notch higher to consolidation around Y-0 instead. And printed 50% of the range as well. Closed the week near week low and above Y-1.
Outlook Not as bearish as Dow or ES. Very structured selling in underlying components observed. It is normal response to the steep selloff 2 weeks ago. What is more interesting is that the price action in NQ showed multiple attempts to push it higher all week.
Price pattern suggests that NQ has just broken down from a triangle visible on hourly. That puts 2920-2930 in play. Once the selloff started do not easily pick bottom until that zone is tagged because triangle breakout to the downside can be very powerful due to the number of trapped longs.
The difficulty here for a normal selloff / pullback is that the government worldwides no longer honour the free market practice. Thus heavy intervention is expected at every break down level to stop the selloff from happening.
Short term support resistance will be breached easily when someone with enough capacity choose to make it happen. Thus you must focus on either very long term plays (e.g. swing on weeks / months) or very short term plays (i.e. day trading). The in-between timeframes will be difficult to engage just like year 2000.
Nasdaq 100 Jun 03 to Jun 07 Outlook
Lawrence’s Comment
NQ spiked way higher on Tuesday open after holiday Monday. Yet it dropped all the way back down to close the gap below. So as oppose to the normal consolidation around the previous week close, the price moved one notch higher to consolidation around Y-0 instead. And printed 50% of the range as well. Closed the week near week low and above Y-1.
Outlook
Not as bearish as Dow or ES. Very structured selling in underlying components observed. It is normal response to the steep selloff 2 weeks ago. What is more interesting is that the price action in NQ showed multiple attempts to push it higher all week.
Price pattern suggests that NQ has just broken down from a triangle visible on hourly. That puts 2920-2930 in play. Once the selloff started do not easily pick bottom until that zone is tagged because triangle breakout to the downside can be very powerful due to the number of trapped longs.
The difficulty here for a normal selloff / pullback is that the government worldwides no longer honour the free market practice. Thus heavy intervention is expected at every break down level to stop the selloff from happening.
Short term support resistance will be breached easily when someone with enough capacity choose to make it happen. Thus you must focus on either very long term plays (e.g. swing on weeks / months) or very short term plays (i.e. day trading). The in-between timeframes will be difficult to engage just like year 2000.
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