In spite of presumably "bad" news regarding the block on Huawei imposed by the US, the overall behaviour of the NQM2019 e-mini futures index shows nothing out of the ordinary. If anything, it hints bullyish undertones, against current events.
At the end of April, and the beginning of May the upward momentum of the index appeared to have maxed out, starting a downtrend.
At the beginning the major downward retracement appeared to adhere to a classic Elliot wave pattern, with the price ranging nicely within a channel, all the way down to the 6947 price level.
There, a new retracecement started, which was supposed to go back to the other end of the channel. One would have expected, if the price was affected by the negative environment surrounding Huawei, and high tech giants, for the price to continue dropping after reaching the price level of 7265.
Instead, we witness the pricess breaking out from that level onwards to 7423, signaling a new trend reversal, into bullish levels. This level corresponds to 23.6% of the Fibonacci extension of the upward price impulse from December 26, 2018 to May 3, 2019.
If anything, we are witnessing a recovery of confidence of the Market in the US high technology sector.
If the price drops at this level, it might be due to normal market behaviour rather than the influence of the Huawei ban, China's blacklist, Mexico's tariffs.
Further bullish momentum could see the price reaching levels as high as 7717, setting the bar to April's levels.
At the end of April, and the beginning of May the upward momentum of the index appeared to have maxed out, starting a downtrend.
At the beginning the major downward retracement appeared to adhere to a classic Elliot wave pattern, with the price ranging nicely within a channel, all the way down to the 6947 price level.
There, a new retracecement started, which was supposed to go back to the other end of the channel. One would have expected, if the price was affected by the negative environment surrounding Huawei, and high tech giants, for the price to continue dropping after reaching the price level of 7265.
Instead, we witness the pricess breaking out from that level onwards to 7423, signaling a new trend reversal, into bullish levels. This level corresponds to 23.6% of the Fibonacci extension of the upward price impulse from December 26, 2018 to May 3, 2019.
If anything, we are witnessing a recovery of confidence of the Market in the US high technology sector.
If the price drops at this level, it might be due to normal market behaviour rather than the influence of the Huawei ban, China's blacklist, Mexico's tariffs.
Further bullish momentum could see the price reaching levels as high as 7717, setting the bar to April's levels.
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.
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.