Break of the channel in pre-market set the morning session bias. Feels like a dejavu. If you look left you see a similar pattern in play. The market is not conducive to a big move. This week is full of events and that what makes that action. The bias remains neutral. The price is in the middle of Bollinger Bands. If we see some selling pressure the lower band...
Yesterday's momentum into the closing dominated today's session. The price channeled up and got close to ATH. Not much has changed to infer what the market is heading. It may stay within the new balance for awhile and consolidate before the next move. Watch for the channel break up or breakdown to get a clue. Next week could be telling. 07/26/2019
Yesterday's bullish sentiment was invalidated ahead of the mega tech earnings. Even in the pre-market the small channel seen on the chart got broken and that accelerated a downside move. The price was channeled down into the previous balance. Responsive buyers are active around July's point of control. Notice how well the Bollinger Bands worked. A strong buying...
The 7940, a monthly point of control, rejection right from the getgo set the tone for today's day session. A trending up price action and momentum broke the recent balance to upside. Market is in uncharted territory making new highs. This is happened ahead of the big techs earnings and GDP report later this week. What we need to see that this breakout sticks ....
Right off the day session opening the market offered a short opportunity. Failure to take out the over-night high attracted the sellers. Plus this is all about risk/reward. The upside was questionable. The smaller timeframes were flashing overbought conditions. As you can see from the chart the sellers brought the price to the dotted line. The oversold condition,...
Responsive buyers were active the entire session. Bottom of the balance, oversold condition and a false breakdown created a buyers revenge trade. This is one of the potential scenarios I outlined in my previous post. The market is in the balanced state. Until the balance is resolved we can see swings back and forth that mean nothing. The challenge is to...
Friday's day session offered a short opportunity right from the opening. A false breakout in pre-market sealed the deal for the sellers. The prices trended lower the whole day and offered a long opportunity off the 7900 level. One need to realize why Friday's are different: - the last day of trading before the weekend - options expiration. From the chart you can...
Not much has changed from the sentiment perspective. A pullback to 20MA provided a strong reaction. Buyers are willing to buy at higher prices. The negative divergence remains intact though. But this is not a sell signal. A better than expected earnings from MSFT and multiple confirmations from Feds regarding the rates cut only add to the bull case. Remains...
It's been awhile since my last update here. However, As a day trader of NQ I post many updates before a day session starts and during the RTH on Twitter. If you are interested you can follow me there: @ivs_futures. The futures are in the uptrend looking for a new top. The momentum is diminishing so the volume. A long time ago I put a projected area where the...
The comparison shows a high correlation between junk bonds and equities. The last Friday’s rally sparked by NFP and the news related to AMZN moved the equities ahead of the junk bonds. What we need to see next week, whether the junk bonds are going to retest the broken trend line first or start a continuation to downside. It seems the AB-CD pattern is not...
A failed breakdown that happened on Thursday was confirmed in Friday’s overnight session. Traders who read the price action as an unfolding story should be able to capitalize on that. The RTH buyers became aggressively active from the day session opening. The day ended with a strong bullish candle. However, the price is right at the resistance. Considering that...
A strong bullish daily candle confirms the breakout of the significant resistance level. The small caps entered a balance breakout mode. Usually, that would lead to continuation pattern until the projected area top is not reached. The bullish pattern would help the S&P to move higher or at least to remain at the current prices. The small caps offer better upside...
A morning weakness with a complete reversal is a current pattern in play. As seen on the chart a strong daily candle closed above the trendline that was breached in the morning. Day traders who follow the market and don’t predict are benefiting from such price actions. Money made both ways. Tomorrow is FOMC announcement. If there is no surprise from the Feds,...
It seems the upside idea started to unfold. With a low volume there is no strong upside move, nevertheless , a breakout remains intact so far. The market can grind up being in the breakout mode for awhile. Traders are advised to buy pullbacks until the breakout is intact. The strength in the Russell helped the S&P, which was expected and outlined in the previous...
The Russell 2000, a true indicator of the broader market strength, is keep testing its major resistance. The original idea that it could offer a better upside reward is still intact. Usually, a support or resistance eventually gives up after multiple testes. In case of the successful breakout the released energy would propel the market - there will be a lot of...
An interesting day. A strong liquidation move in the morning which followed by a V-reversal. Buyers are betting on higher prices - that's the only conclusion one can make from this price action. What could ruin this sentiment? Google and Apple will be reporting next week. They represent around 20% of the index. FOMC announcement. Any surprise could lead to a...
A strong trend up day on the market. The previous all time high is a launching point to the upside. Regardless of why the buying occurred today, the price action shows a clear buyers domination: a wedge breakout, a solid bullish daily bar. The investors are betting on strong earnings of the mega techs that will start tomorrow. AMZN led the Nasdaq to upside...
Here is a dissected daily chart of Russell 2000 futures with important levels to watch. As of today, the index remains the weakest among the others. Last week it tested an important trend line but managed to close above it. The index has an interesting behavior that could be used to trader's advantage. For example, it may be in a catch up mode and trend well...