NQ at potential support. Looks like NDX will open lower Thursday . . . and it was somewhat expected that futures would gravitate lower considering VXN closed in no-mans-land today. . . anticipating a tap of VXN at the 36 level resistance and then NDX to the upside. PCC is within normal levels indicating to me that there is little panic and/or bearish sentiment...
We all know the market is overdue for a correction. Many market makers estimate an approximately 10% sell off - corresponding to a +/- 30% sell off in TQQQ.
VXN and VIXY are setting up for a potential volatility breakout +/- Feb 02. Potential catalyst could be an underwhelming NFP? Rising corporate bond yields may also put pressure on valuations.
NDX looks like it could find support at ~11,000 for the following reasons.
1) Potential Trend Line Forming; Break toward the top
2) I have the 2 Stdev Bollinger bands plotted: Price action is at the lower limit at this moment and could present buying pressure from the many who use this metric for entry points.
3) Fib levels show a retracement level at about...
Watch the VXN. Looks like a short-term long setup at VXN below 38 or at the 47 blip. TQQQ estimated low at 98 lowest before retracement and NDX at 10,000 lowest.
Recommend placing collar options on this trade.
NDX on a technical basis still looks as if it has another 3-5 percent to give and is especially apparent when cross-referenced to Copper which is approaching a resistance area.
I suspect that we will see a 15-20% (inline with market maker estimates) correction soon beginning around July 17th +/- at which point the Nasdaq will re-establish its pre-covid trend...
Price will cross-over the resistance line and re-establish the previous trend line. The market previously attempted to follow the trend line on 2020-02-28, but failed 2020-03-04 with the failure of the oil markets as the catalyst for panic selling.
Oil futures and copper futures are showing strong upward movement with no resistance in site providing assurance...
