THE NASDAQ IS AT A VERY IMPORTANT PRICE POINT RIGHT NOW. ALL INVESTORS EYES ARE ON THIS RESISTANCE LEVEL.
In the chart directly below you can see the long term downward trending price channel that NASDAQ futures have been traveling within during this bearish sell-off that has been going on since last November.
Currently the price of NASDAQ futures is near this long-term downward trending resistance of this price channel that I've highlighted by the purple trend lines. If the price can get above this resistance level then we will have officially broken out above this long term downward price channel. That would be bullish. Of course there is always a possibility that there could be rejection of this resistance and the price could fall from here. I am preparing myself for either scenario. And I will always be cautious of a false breakout.
Remember to be patient with the price action near these long-term supports and resistance levels. On many occasions at the strong long-term levels you can get some whipsaw price action that can stop everyone out of their long and short positions. It is also possible to get a very swift break out to the upside or swift rejection to the downside. With so many investors having their eyes at this price point there will be an abnormally large amount of investors entering and exiting investments at this level which will increase amount of volume and volatility at these long-term technical levels. So be careful and be patient.
In the chart below you can see the 4-Hour candles. You can also see how the price of NASDAQ futures has been climbing up within this short-term price channel beautifully. This is a strong rally and could possibly appear overextended and overdue for a pullback. But this really does not seem to be showing any signs of slowing down just yet. Especially after the strong rally following the CPI reading which showed inflation was slowing down.
If you purely follow the weekly candles and MACD then NASDAQ futures is starting to look good at this price point. You can see the bullish crossover on the MACD that has recently happened. And each time there has been a big sell-off and NASDAQ futures in the past, the bullish crossover on MACD that follows typically leads to an opportunity for major profit on the long term time frame.
All we need to do now is wait and see if NASDAQ futures can break above the long-term downward channeling resistance that I mentioned in the very first chart. If we break out above resistance I will be preparing myself for a long position. If we reject resistance and the price falls then I will prepare myself for a short position. But I will be patient and make sure there is no false breakouts or breakdowns.
$FTSE Singapore Straits Time Index(.STI.SG$ $S&P/ASX 200(.XJO.AU$ $SSE Composite Index(000001.SH$ $CSI 300 Index(000300.SH$ $Hang Seng Index(800000.HK$ $SPDR Dow Jones Industrial Average Trust(DIA.US$ $SPDR S&P 500 ETF(SPY.US$ $VIX Index Futures(JUN4)(VXmain.US$ $SPDR Gold ETF(GLD.US$ $Powershares Exchange Traded Fd Tst Db Us Dollar Index Bullish Fund Etf(UUP.US$ $iShares 20+ Year Treasury Bond ETF(TLT.US$ $ProShares UltraPro Short QQQ ETF(SQQQ.US$ $ProShares UltraPro QQQ ETF(TQQQ.US$ $Microsoft(MSFT.US$ $Apple(AAPL.US$
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JustSurface : that CPI was a joke
oil is down now but I have doubts it will stay down for long. food prices keep rising with everything else. this CPI number factored the oil dip in so it LOOKS like the trend is changing but in reality it isn't.
how long can this market be propped up before midterms is the question
I saw a bounce off the top line and we sink till October and maybe see another bear market rally going into elections
these rate hikes the FED are doing take 3-18 months to show effects. so by the shortest time frame we are just seeing the first 0.25% hit.
I've got a giant short position, full disclosure,
$ProShares UltraPro Short QQQ ETF (SQQQ.US)$ $Direxion Daily Technology Bear 3X Shares ETF (TECS.US)$ $ProShares Short QQQ (PSQ.US)$ $Direxion Daily Semiconductor Bear 3x Shares ETF (SOXS.US)$
SpyderCallOP JustSurface: I've noticed you like to trade those leveraged shares. if there is ever a time for the nasdaq's price to start dropping this would be the moment at this resistance level. or we could get some long-term range bound action possibly I don't know. I'm just going to wait and see
JustSurface SpyderCallOP: maximize gains and the pains
Violets : I jumped the gun a little bit and took a short position. realizing that we may even soon be leaving this bearish market.
Stockfishing Violets: Dangerous going against the market trend, I was taking a short position the day before CPI report is out. It’s only 0.1% lower but market moved so much.
Violets Stockfishing: I know and as I was doing it I was saying don't do it LOL
Stockfishing Violets: Oh I misread in that case better to wait and see. I’m not convinced of the bull trend.
icezzz : Thanks for ur update.
waiting right time to buy Sqqq.
SpyderCallOP Stockfishing: I know it seems like it doesn't make sense. maybe the market priced in too much downside for inflation? personally I don't know. the market doesn't make a lot of sense sometimes.
SpyderCallOP Violets: I had a short position on Tuesday. and it got stopped out this morning when the market ripped. I was feeling a little bearish myself. now I want to see how this week will end before I can decide
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