Nasdaq 100 Jul 23 to Jul 27 Outlook

By News Robot

Lawrence’s Comment

Recap
Unlike Dow or S&P, NQ was forced to breakout upside when both Dow and S&P both moving up strongly. It has been a long while since last time that NQ was not a leader. This behaviour caught many traders by surprise obviously and started a very volatile short squeeze. NQ finally gave up when it tagged the month high made early in July. Closed the week above midpoint and below Y+1.

Outlook
2 opposite scenarios emerged. Both patterns are valid and almost equally likely.

First is a massive double top in the making that is visible all the way upto daily timeframe. Early confirmation that this pattern is in control when NQ drops down to close on daily basis below Y-0.

Equally powerful is a weekly level continuation pattern. It will be confirmed if NQ can close above B+1 on daily timeframe. That points to a significant rally with minimal target above B+3.

Usually a situation like this only emerges when major (weekly and above) timeframes is having a showdown among the bulls and the bears. It is a good time to sit on the sideline and let them fight. We can always join the winning side later.

Share

  • You must be logged in to comment. Log in