The major stock & futures markets put in a strong bullish rally last week following Thursday’s weaker-than-expected CPI reading.
S&P 500 (ES) futures jumped 5.8%, while Nasdaq 100 (NQ) futures gained 8.8%.
With that move, these markets jumped above the short term down trend lines we were watching.
However, we have now updated our analysis, and we are still looking for selling ideas based on the new channel we’ve identified…
NQ at a High Price
In the daily chart of the NQ below, you can see how the channel formation has shifted…
The NQ daily time frame is in a down channel. The market hit the top of the channel and is now pushing bearish towards the bottom of the channel.
There is a down Fibonacci with an extension below the market price point 9,595.25, about -8,912 ticks below the market.
There is also a small level of support below the market price point 10,796.75, about -4,155 ticks below the market.
As long as the market stays below the top of the channel, it will be a good idea to turn to the one hour time frame and look for high prices in the sell zone towards the daily support price point 10,796.75.
The Great American Reset
According to expert analyst Ross Givens, America as we know it is about to change.
Long-term, I believe this change will be for the better.
But to get there, you, me and every other American citizen will have to live through an unprecedented level of chaos…
Unlike anything any American has ever experienced.
Keep on trading,
P.S. For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.
I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.
And if you know someone who’d love to make this a part of their daily trading routine, send them over to joshsdailydirection.com to get signed up!