SviCapital

NQ1!, Buyers in Control until They Fail

CME_MINI:NQ1!   NASDAQ 100 E-mini Futures
The market remains in a trending mode after breaking the resistance level . The chart says it all. A notable trend line is intact until it is taken out. That would be a sign of entering a consolidation phase and potentially a short term reversal. I think that a retest of the all time high is on the horizon and before that happens the price will be trending up.

The market remains overbought on multiple timeframes and stretched to upside constantly reignited by news feed. The China news never gets old for the Algos. Traders with a rational mind find that situation is unstable understanding that such moves are rarely sustainable. But for the Algos such consideration is not an issue. They follow the trend. As long as the price above moving averages they buy pullbacks regardless of the stock values.

Today's day session was a continuation of the move that started in Asian session. Despite being overbought the buyers got aggressive at the bell ring chasing the price and pushing it higher. I personally expected to see a pull back to get on board so I could manage my risk. It did not happen. But the market hit my resistance level and the price action showed a sign of profit takers. That was a cue for me to short the market. At the trend line I flipped to longs knowing the Algos behavior during day sessions. Basically, the market still offered objective entries with controlled risk.

Watch the price development and the trend lines . 7840 level break would be a warning sign for the buyers. A strong rejection would turn the table around for the Algos and they will be selling the rips.

9/5/2019
Complete.
Extremely well done.
I just wish you were trading the S+P or the Dow Futures :)
+1 Reply
SviCapital The_Unwind
@The_Unwind, thanks, I used to trade the Es for a long time. :)
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