NASDAQ NQ (QQQ, NDX) Gap Fill Long

26 sept. 2023

Quick take here before signing off. We’re already seeing a buy side reaction in US equity indexes as the ES (S&P 500) came very close to filling its downside futures gap. We captured the S&P 500 idea in a post several hours ago (tradingview.com/chart/ES1!/yMPhYDUg-ES-SPY-Gap-Fill-Long-with-Confluence-Odds-Enhancers/). If equities retest lower, which we believe they’re likely to, the NQ has a couple solid demand/buy zones (green lines) not too far away. Per usual, we’ll have to see how prices approach the levels – hopefully we don’t get too much of a methodical grind lower, forming clean supply/resistance to immediately challenge buyers @ our demand areas; if this happens, the trade’s profit margin/risk-reward could be truncated.

We’ll do a more thorough check later and will update this post, but wanted to give you all something to think about. Comments welcome!

Jon @ LionHart Trading

27 sept. 2023

Note

We'll see, but getting preliminary signs of buying alongside the ES filling its gap (est. 6/7/23) and coming into some demand. The NQ futures gap remains lower and sellers are still in control, so it's difficult to be confident in longs. That said, the Nasdaq is reacting to "drop-base-rally" demand 14609.25-14661.50 (120-minute/2-hour chart); 14609.25 is also a NQ pivot low, which support traders will be watching/could defend. Ideally we'd see more cross-market confluence and fill the NQ gap. Longer-term technicals and momentum certainly do not favor bulls, so remain very nimble/conservative.