Markets are up for the third day in a row and showing another big rally this afternoon.
The tech-heavy Nasdaq 100 (NQ) futures market is up 1.8% today alone and up almost 12% from the recent low.
Investors are looking ahead to important earnings reports from mega-cap technology companies like Microsoft (MSFT), Meta Platforms (META), Apple (AAPL) and Amazon (AMZN), which will be released throughout this week.
However, we see a technical level that could get in the way of any positive fundamental news, so we’re still looking for further downside action…
Technicals or Fundamentals?
As technical traders, here’s how we see the daily time frame setting up for the NQ.
The NQ daily time frame is in a down channel.
The market hit the top of the channel and is now making lower lows and lower highs pushing towards the bottom of the channel.
The market has a down Fibonacci with an extension price point 9,595.25, about -6,966 ticks below the market.
As long as the market stays below the down trend line, it will be a good idea to turn to the one hour time frame and to look for high prices in the sell zone.
The Bottom Line
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Keep on trading,
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