The stock market is having a very tough day. Bears appear to be running amok, and losses have been mounting in various sectors and indexes.
This includes the technology-heavy Nasdaq 100 Index and the Nasdaq 100 Index futures contract (NQ).
But while the index and the contract are down big today, it still may be setting up opportunities for a trade right now.
We see trading inside a channel that could be in the process of breaking up that could set up a gain from either the upside or downside moves.
So, today, rather than just throwing in the towel, we are looking at how a trade may be shaping up and how to profit from either a bull or bear move.
The Nasdaq 100 Index (NQ) Trade Setup
Here’s how the chart is showing the potential gain from the technology-weighted Nasdaq 100 Index futures contract in either a bull or bear trade set up…
And here’s how I see the potential bull or bear trade setting up…
The Nasdaq 100 Index futures contract (NQ) daily time frame is in a channel. The market is at the bottom of the channel.
The market can do a couple of things…
A) The market holds at the bottom of the channel and pushes bullish towards the top of the channel price point 13,651.50, about +8,483 ticks above the market.
Or B) the market breaks below the channel and enters into the sell zone. If that happens, we can apply a down Fibonacci to help find the future extension.
As of now, the market is in the buy zone, at a low price, hitting support. It will be a good idea to turn to the one hour time frame and to look for low prices in the buy zone as long as the daily stays above the bottom of the channel.
The Bottom Line
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Keep on trading,
P.S. While US stocks are showing potential opportunities, there are also alternative assets that I also see providing trading opportunities.
Digital currencies are setting up profitable trades that could provide an alternative income source for traders armed with the right information. And this could even set up a nice side job (gig) for you in the process.
I continue to provide this information in my War Room research service, which you can learn more about here.