2025-05-06 - priceactiontds - daily update - nasdaq
Good Evening and I hope you are well.
comment: Clear trading range 19700 - 20300, don’t make it more complicated. We have FOMC tomorrow, then we will get a new impulse.
current market cycle: trading range
key levels: 19700 - 20300
bull case: Bulls defended the gap below to 19650 and prevent the bears from printing a bearish daily bear bar. Bulls are fine with the market correcting sideways, since that increases the odds of a continuation up and running the stops above the prior major lower high 20536. Bulls need to break above 20070 tomorrow or this could slowly become more bearish again, especially when we make lower lows below 197300.
Invalidation is below 19100.
bear case: Bears see it as a lower high major trend reversal and if they can stay below 20000, their odds increase to continue down. They broke below the first bull trend line and the next is around 19700 tomorrow. A strong 1h close below 19700 and I think more bulls will give up on this bounce.
Invalidation is above 20100.
short term: Neutral. Continuation in given range is expected until FOMC. I don’t know if Jpow can really move this but let’s see. Don’t gamble.
medium-long term - Update from 2024-04-20: My most bearish target for 2025 was 17500ish, given in my year-end special. We are +18% from the lows and I do think, once this turns again, it will easily be the short trade of the year.
trade of the day: Short since Globex open since Market could not get above 1h 20ema for 299 points down.
