An inside day with a bullish skew. Yesterday's selloff did not scary the buyers. They defended the Globex low and remain in control the entire RTH session. Levels to watch: - aggressive support - 7160-65. Holding above it opens a door to retest the recent high - today's low - 7124.5. An important level to hold for the buyers. Loosing it may open a door for...
The Globex buyers pushed the price above Friday's high creating an island structure. An island structure is bearish by nature when it comes at the end of the exhausted bull run. The RTH buyers tried to advance based on the Globex structure but only managed to make a marginal high. I was looking for a failure of the buyers. I was watching 5 min chart to see a...
A first day of the month brought some volatility especially to the RTH opening. The session had opened at the resistance and despite of the aggressive buying the sellers pushed the price back to 7100 ish level. The buyers managed to step in in front of the falling knife and completely reversed the action. This behavior is seen day after day. It means the pullbacks...
A revised chart with a smaller timeframe to see the action. A weak Globex session ended with a snappy buying from the RTH opening. It was a typical morning when the buyers don't give a chance anybody to get in at a good location :) 15 min later the Algos heard the news and reacted quite strongly shaking out buyers. The herd behavior is their signature. They...
A gap up in Globex session set the futures into breakout mode across the board. The RTH session spent time processing this breakout and confirmed it so far. As long as the price remains above 7100-ish the breakout would remain intact leaving the buyers in charge. This is a typical market action. Usually, shorting is not advised when the market is in the breakout...
The multi day balance is quite mature and the breakout of either direction is highly probable. Carefully observing the recent price action the odds are higher for the upside breakout. Almost every session had a liquidation move which was successfully bought and reversed. Friday's action is no exception. The low odds scenario is a balance breakdown. However, the...
Today, the Globex buyers, driven by the news, made a marginal high and got just shy of the projected first target - December 2018 high. Before the RTH opening a few Econo reports helped to move the price lower. It was a bearish start that offered a short setup. Earlier in the morning the buyers regained the control and completely reversed the price filling the...
The market continue to balance in a narrow range for some days now. This is usually a sign for a bigger move to come. Today, the FOMC minutes brought some volatility without making any changes to the existing structure. Surprisingly, the VIX made a new low 13.99. NQ had a few nice swings to trade after the minutes announcement. They were short lived and required a...
A new February high was set in pre-market. Kudos to buyers. The spike ran some stops but the price quickly retreated offering a short opportunity around 7070 level (top of the recent balance). This is a typical and a high probability setup to fade a move. When the price is grinding up shorting requires a precise timing and a lot of patience. But when the top is...
A bullish day. But if you look at the price action there is no change to the market structure. Bulls made a run from the bottom of the balance to the top. Keeping the price above today's RTH low 6954 or 6940 (50% of the entire balance, gives the bull a chance to break out the 9-day balance and move higher to December 2018 high and 7230 which is the top of the...
The market pulled back to previous 3 day low and completed the range. I have put a box around the new range to watch. This is a normal market action - a development phase, finding a short term top, finding a short term bottom than consolidation within that range. Even though the daily bar looks bearish in reality there is no damage have been done to the bullish...
Today the bulls completed the action by hitting the first projected target - December’s point of control. It also had a confluence with a launching point of the downside move. Whether we see a deeper pullback remains to be seen. It was not an easy market to trade today. The bulls pushed higher from the RTH opening without giving a chance to get in. In such cases...
The recent balance, last rectangle on the chart, remains intact. The price is on the path to retest December POC and December high. These are objective targets based on the market action theory. Return into the previous balance would suggests some weakness. It remains to be seen how the price behaves if that return happens. So far the bullish bias is intact as...
The Nasdaq futures continued to balance within a 7 days balance area. This is a mature balance. Today's low tested the bottom of the balance which was a confluence with 20 day EMA. Buyers defended the area. It was low odds that either side would commit ahead of the Apple earnings and FOMC announcement due tomorrow afternoon. During the earnings call the price...
The chart outlines important levels to watch. I labeled them based on the market profile theory and market structure. The price is at important resistance and stuck between 2 major monthly High value nodes. The last daily bar shows a directional move off the Jan 2019 High value node. This is a typical market action indicating an acceptance of the old value and...
A very balanced day with a narrow range. A doji daily candle. The market took a pause to build a mature balance. Usually, this type of a price action leads to a directional move in the following day. Watch for a conviction, a strong bar originated from the high value node around 2633-37. That conviction with a good volume should take the price above 2677 or...
Here is a complete dissected view of the Nasdaq futures market action from the recent all time high to the recent low. This is how I process any instrument though the market action view. It works well on any timeframe. Whether you are a day trader or a swing trader. Back to Nasdaq. I have marked important levels to watch. The bulls remain in a firm control above ...
Nasdaq E-mini futures is flirting with a trend line while on its way to 7000 mark. This trend line has provided a good reaction and most likely is being watched. There is a potential resistance that would cause a pull back. I need to emphasize the word potential. Any level is only potential. Considering that upcoming holiday it may lead to a short term risk off....