Stock, Option and Futures Trading
Im Back – Market Update
I have been out of the office at the hospital with my son since last week. All emails will be answered today or tomorrow.
The NQ broke the 161 bar low but as we made the new low at the ES .618 the NQ was 24.10 days with 62.75 points.
24.10 Divide by = .384 and the square root of .384 is .619 (or .618) % time support.
The point is the lows are still support as we noted last week. It seemed like the market was waiting for the DOW to get to the 50% and the ES to get to the .618 before having this short squeeze.
The market is at short term resistance right here so again there are multiple bullish and bearish patterns at the same time but the major levels are the supports and they are holding.
ISRG is breaking out to the upside. LVS and ICE are up good on the day. TZOO is the only one lagging the market. For now we will hold the calls since they are Jan and see how the next pullback looks to potentially enter long again.
Where we entered long last week was the 60 min 1-2-3 pattern and that pattern failed as the market pulled back into the bigger levels of support. That means that the bigger levels are more in play and when we make a move out of this sideways zone the move should be large. The sideways zone is large in itself because it is a Daily chart zone (NQ 2400 – 2150).
Looking at the markets it feels right to just go flat here and wait until next week but then when i look at LVS and ICE they still look like they need to trade higher. TZOO is trying to build a base but there has been no follow through. We entered on a gap up so the fills are not good but lets give the market some time to digest this current move before taking action.