Yesterday, I exited my long positions. I am beginning to dislike the set ups that Tesla was providing over the last week. The market is taking too long to follow through to the upside in my opinion. With that said, the Tesla stock remains above the 10 and 20 keeping it at a posture. I'll post on Tesla later today to give a more in depth explanation as to why I exited. For now lets get on with a review of the Nasdaq 100 (NQ).
Blue Skies Ahead Right?
The Nasdaq-100 (NQ) just keeps creeping up toward its all time high as if it were a magnet, while other indicies seem content as bottom dwellers. Each chart today will be in the daily time frame. Let's begin!
Above I highlight . Clearly a lot more support than resistance above. The only question is whether the all time high can be taken out in one shot. In my view, no. It'll likely take a few attempts. Below is the most scenario, though least likely.
I tend to favor a deeper pull back to support #2 if there were a pull back. If all time highs were tested support #2 would be equivalent to a . A normal retracement level for corrective waves. Yes, I said corrective. If you understand you know that corrections can head higher in strong markets. It's the only explanation we can make, while the Dow Jones and S&P continue to lag behind and look like bear markets. I have a scenario in mind and I plan on sharing once we begin to retrace a bit.
Yesterday, I almost FOMO shorted the NQ but came to my senses after looking at the chart below.
Nothing is happening yet! As long as the NQ is supported by the 10 and 25 , the bulls must be respected. We should be keeping an eye for a cross of these two EMAs before entering any short positions as well. More on this when the time comes to initiate shorts! For now, the NQ is too strong and my bias remains the same until the market shows me other wise. Bias: Bullish.
In the meantime, could it be nothing but blue skies ahead for the NQ? Absolutely. But be wary at the all time high retest! I'll be back later on to talk Tesla . Happy trading!