Pre-open comments holding true so far as major markets continue to pause today after having run quickly up to resistance.
Nasdaq is without a doubt the weakest market, having actually started a new downtrend in shorter time frames.
NQ – Nasdaq 100 Futures: despite the positive outlook on other markets, we have to note that Nasdaq is starting to retrace to the point of no return at which, like when an elastic stretched too far suddenly gives way, price becomes more likely than not to retest the recent lows. Something to keep in mind if a sustainable bounce does not show up soon (by Friday).
The Dow and S&P 500 markets are stuck firmly in chop in a very narrow range, making it impossible to be inspired regardless of outlook.
YM – Dow 30 Futures, 5M chart
When we see swings overlap like this in a tightening range its time to sit back and wait out the chop – let other people chew up their trading captial trying to guess the direction.
05.02.03 12:23 #