Stock, Option and Futures Trading
NQ Pattern + NFLX
July 11, 2011
From our intraday post the NQ level did hold and was the low of the day. Now we are looking for a move back up to the 2375 then the 2388 level. We noted in a video the NQ had FIB time resistance on Fridays close. It was a .382 time resistance and we said IF the NQ takes out the low of Friday we should see a move down and to look to that level to tell you to cover long positions.
Technically the market could go higher from here and break the daily high but that has low odds of happening. The higher odds outlook is that we correct down a few more waves.
Tomorrow at the open if we take out the low of today early we are not interested in jumping on short for a position day trade. Our outlook and levels go into the next day and the next day if they are not hit meaning; just like we posted intraday today that the NQ should find support at the 2353 level the NQ should still find support there tomorrow.
This does not mean the level 100% holds but it does mean we would still label the wave extended if we do break the low without a correction. Knowing this can give us odds on levels and slow the market down so we are trading the pattern NOT our emotions.
PS. We had our bigger target on NFLX at $300.00. You can see what happened today off our $300.00 target. Huge move down!