Is the NQ About to Shift?

Good morning, Daily Direction readers!

Even with the recent bullish push in the Nasdaq 100 E-mini Futures (NQ), we’re still out of the market. That’s because the short-term direction for the NQ is still down.

Despite the current positive movement, all indicators point to the NQ selling off toward the bottom of the channel. The price is still too high for us to jump in right now.

But the long-term direction remains up for the NQ, so we’ll need to patiently wait for the price to come back down to the bottom of the up channel before we consider buying the market. If we buy in now, we risk snagging the NQ at a high price just before a sell-off. And since our goal is to make a profit, such a position would really hurt our account.

For now, we’ll keep waiting for the NQ’s short-term direction to sell off and then give us a nice reversal back toward high prices.

Timeframe charts are the best way to determine when the market is ready to buy, so let’s make sure we dig in and get all the data we can:

Daily Timeframe Analysis

When looking at the daily timeframe for the NQ, we can see that the market is still too close to the top of the channel, while the current data points to a sell-off.

DAILY TIMEFRAME

The long-term direction is up for the NQ

1-HR TIMEFRAME

The short-term direction of the NQ is down for now

THE BOTTOM LINE

The NQ is at the top of the channel and is preparing for a sell-off

Daily timeframe

The NQ hit our price limit and pushed through the inner up trendline. The market is currently preparing for a sell-off despite the recent surge

Despite the fact that the market has moved outside of our trading range, now is a fantastic time to prepare our buy-in strategy while we wait for the market to return to the bottom of the up channel.

Don’t forget that the long-term outlook for the NQ is positive. That means we’ll get back into buyable position for the short-term eventually.

The Bottom Line

Since the NQ market has gone over our price limit, reached the channel’s top, and is on the cusp of a sell-off, I’m staying out of it right now. Before a new bullish rally takes hold, I expect a selloff that will push the market to the channel’s bottom.

While we will not trade the NQ during the sell-off, we will have an ideal opportunity to enter the market if a new low price is reached. We’ll just have to wait and see how things turn out.

The Bottom Line
We’ll be looking for a new bullish rally once the market reaches the bottom of the channel

We’ll be looking for a new bullish rally once the market reaches the bottom of the channel

You’d be absolutely lost if you didn’t have my technique to guide you through the current movements of the NQ futures market. That’s why it’s time to start utilizing my knowledge and expertise! You can’t afford to miss out on this.

Keep On Trading,

Mindset Advantage: Balance

When it comes to your mindset for trading, you’ll find that your ability to cope with the markets, bad trades, good trades – whatever – has more to do with how you spend your time outside of trading. More specifically, how much balance you have.

 In fact, of your total state of readiness 10% may have to do with charts and price levels. The other 90% has to do with how rested you are. How focused you are. How happy you are.

Find a balance that works for you and begin the path towards happy trading.

Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

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