Nasdaq What Now Episode 2

Nasdaq 100″s opening yesterday screamed, “what now?”. That drastic drop though. It felt like the bears left something over there (13700). Anyway, they also—picked it up real quick. Hold up. It’s 1.3.2022, Yup, Happy new month guys.

The market went down 484 points (14184-13700) in matter of minutes. It may seem as though, the resistance at 14200 is a strong one Nasdaq has barely been able to get past it. The back and forth. I remember talking about the divergence in the previous episode. The bulls have made a 4 point stand so far. Balancing the bears by a 4-4 in confluence score.

Taking a trade? Think “open-minded”..

Who’s In The Nasdaq Market And What Are They Doing?

The bulls obviously. Duh. They’re still galivanting around—unsure of how to break past that 14200 zone to maybe, 14400 then, 14600 before finally getting to, 15k. Presently, the Nasdaq is trading at 14241-14250 range. Albeit, the side-ways market is obviously still intact. However, the bears are still dropping wicks behind.

On the daily, we have a wick at 13,050 with another at, 13,700 and 14,000. At exactly 12am today, the market opened higher—could this mean the bulls are aiming for that mid point (14,600)? From my chart here: https://www.tradingview.com/x/1BmsUwHv/  you can see that an obvious pull might take place at that mid—it’s also the mid of the channel as well.

What Chart Patterns Are Visible, The Current Market Structure, And Stage Of The Ndx

Earlier, I mentioned the confluence score being 4-3. Yup, it sure is. Listing the present confluence for the bulls, you’d see: An inverse head and shoulder here on the 240 minutes chart—https://www.tradingview.com/x/G3DGX1Yb/, On the daily, You get to see a bullish divergence, a double bottom, and a maintained 13th of May, 2021 support.. That’s four. For the bears: On the 240, you get to see a maintained resistance with lots of shorts. The daily, A double top with Lower highs and lower-lows, Head and shoulder with the market leaving lots of empty wicks. That’s also four.

At this point, We’re still mostly at equilibrium. No side is showing more strength than the other yet. Overall, the bears are still probably in charge because they haven’t been a higher-high or higher-low in sight yet.

I mean what strength could surpass that? In conclusion, I’m just being careful not to go against the trend. Finally, for the trading plan, due to the Russian-Ukraine squabble, I’m not taking large targets. A cool 2:1 or 3:1. Waiting for the Nasdaq to get past 14200 and show rejections while waiting for the bounce—then, I take a trade. In addition, Just chilling! You should too.


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