The Nasdaq futures continued to balance within a 7 days balance area. This is a mature balance. Today's low tested the bottom of the balance which was a confluence with 20 day EMA. Buyers defended the area. It was low odds that either side would commit ahead of the Apple earnings and FOMC announcement due tomorrow afternoon. During the earnings call the price spiked up back to January High value node. This is a bullish sign so far. We may see a continuation of the move overnight. At this point, no changes to the market structure. As long as the price is confined within the 100 points recent balance the bias remains Neutral-Bullish. Watch for the balance resolution which most likely lead to a trend day.
01/29/2019
01/29/2019
Note
The momentum to upside was created in Globex session after Apple reported their earnings. The RTH session continued that theme. The FOMC announcement added even more momentum. From the market structure perspective nothing really changed. The price crossed the balance from the bottom to the top. In order to have a sustained breakout the market needs to rest and build a smaller balance at the top edge. Perhaps, this could happen on Friday after NFP. The bullish price action increases odds to upside breakout. If the breakout fails many bulls will be taken by surprise...01/30/2019
Note
Today the price broke out of the balance and started to drift up in the direction of the December 2018 HVN, around 7040 area. The Globex session has created a nice balance that supported the breakout. The grinding up action was quite slow and painful but I have learned over the years not to fade that move until it gets to a good resistance combined with a daily range exhaustion. My only short was at 6941 which worked fine despite the never ending desire from the buyers. After the hours we have AMZN reporting. This is another catalyst for NQ. We have to see what happens. There are some objective factors support the idea that today's high could be the short term top: a broken trend line originated back to 2009, backtested today, 40 week EMA. But we will see how it goes. An attempt to go back into January range on a strong momentum could be a bad sign for the bulls. 01/31/2019
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.