NASDAQ FUTURES 7/31/2024
Nasdaq Trading Update:
Current Analysis:
Accumulation Phase: The Nasdaq is currently in Phase C of the accumulation phase. I am considering placing a buy stop order above the Last Point of Support (LPS) in this phase.
Wave Structure: It appears that Wave 5 has developed, and the target for Leg 5 has been reached. We are likely seeing the end of a correction, which could be a Zigzag, Flat, or WXY pattern.
Price Dynamics: There is a noticeable slowdown in the speed of price change compared to the past two weeks. This could signal a potential reversal or consolidation phase.
Volume and Divergence: A low volume area has been reached, indicating reduced market interest. Additionally, divergence has formed, which supports the conclusion of Wave 5.
Trading Strategy:
Buy Position: After two stop losses on previous attempts, I have taken another buy position, anticipating that the current correction phase is concluding.
Wave 1 Prediction: Predicting Wave 1 can be challenging in terms of timing and price. Generally, Wave 1 is expected to be the most significant after prior 3rd and 5th sub-waves. Observing the behavior of these waves will be crucial for understanding the potential direction.
Upcoming Events:
New York Session: Major events are expected today during the New York session, which will likely provide significant insight into the market's direction over the next two months.
Interest Rates and PMI: The upcoming announcements on interest rates and PMI are critical for this trading idea. These factors will likely influence market sentiment and direction.
Market Sentiment:
COT Data: The Commitments of Traders (COT) data supports the notion of seller weakness, aligning with our bullish sentiment.
Next Steps:
Monitoring: Watch how price action unfolds, particularly in response to today's major events.
Adjustments: Be prepared to adjust positions based on market developments and new information.
Conclusion: The setup appears promising with the identified divergence and price dynamics. Let's observe how the market reacts to key events today and adjust our strategy as needed.
Current Analysis:
Accumulation Phase: The Nasdaq is currently in Phase C of the accumulation phase. I am considering placing a buy stop order above the Last Point of Support (LPS) in this phase.
Wave Structure: It appears that Wave 5 has developed, and the target for Leg 5 has been reached. We are likely seeing the end of a correction, which could be a Zigzag, Flat, or WXY pattern.
Price Dynamics: There is a noticeable slowdown in the speed of price change compared to the past two weeks. This could signal a potential reversal or consolidation phase.
Volume and Divergence: A low volume area has been reached, indicating reduced market interest. Additionally, divergence has formed, which supports the conclusion of Wave 5.
Trading Strategy:
Buy Position: After two stop losses on previous attempts, I have taken another buy position, anticipating that the current correction phase is concluding.
Wave 1 Prediction: Predicting Wave 1 can be challenging in terms of timing and price. Generally, Wave 1 is expected to be the most significant after prior 3rd and 5th sub-waves. Observing the behavior of these waves will be crucial for understanding the potential direction.
Upcoming Events:
New York Session: Major events are expected today during the New York session, which will likely provide significant insight into the market's direction over the next two months.
Interest Rates and PMI: The upcoming announcements on interest rates and PMI are critical for this trading idea. These factors will likely influence market sentiment and direction.
Market Sentiment:
COT Data: The Commitments of Traders (COT) data supports the notion of seller weakness, aligning with our bullish sentiment.
Next Steps:
Monitoring: Watch how price action unfolds, particularly in response to today's major events.
Adjustments: Be prepared to adjust positions based on market developments and new information.
Conclusion: The setup appears promising with the identified divergence and price dynamics. Let's observe how the market reacts to key events today and adjust our strategy as needed.
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