Nasdaq Futures Form a New Down Channel

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…

Daily Chart of Nasdaq 100 (NQ) Futures — Source: TradingView

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.

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Keep on trading,

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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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