Technology stocks continue to vacillate in the market with lower trading in a down trend.
And while on any given day we can get a bounce back up, the chart for the Nasdaq 100 Index (NQ) futures contract is showing lower lows and lower highs.
Furthermore, the market is now stalling out at the underside of the old down trend line and moving lower.
So, let’s take a look at the NQ and see how it is shaping up…
The Nasdaq 100 (NQ) Down Trend
Here’s how the Nasdaq 100 (NQ) chart is shaping up…
Nasdaq 100 Index Futures Futures Contract (NQ) Price and Technical Analysis – Source: TradingView
The NQ daily time frame is in a down trend, with the market making lower lows and lower highs.
The market just hit an up sub Fibonacci extension price 12,999.50.
It is expected the market will have a bearish reaction after hitting this Fibonacci extension.
If the market can break and close below the short term uptrend line, it will be a good idea to turn to the one hour time frame to look for selling ideas in the sell zone towards the daily down Fibonacci price point 9,480.75.
The Bottom Line
There are multiple ways to trade the futures, stock and other markets. We can trade the indexes, both up and down, as well as individual stocks.
But with inflation on a fast-track, you need to know how to amplify your gains. To see how I do it, check out the link in the P.S. below…
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Keep on trading,
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