Today, I want to follow up on the weekly idea I posted on my TradingView page on Oct. 27.
At the time, the Nasdaq 100 (NQ) futures market had just bumped up against resistance at its short term down trend line.
This was a known level of U-turn, so we were expecting the market to reverse lower and drop back towards the bottom of its down channel.
We set an initial downside target at 10,934.50, which was actually hit not long after the idea was published.
Now, with further selling following yesterday’s interest-rate hike from the Federal Reserve, the NQ is starting to make a push towards the next bear target…
Next Bear Target in Sight
Here’s how I see the NQ chart setting up for further bearish action on the hourly chart now that the initial target was reached…
The larger time frames are showing the NQ market is expected to push bearish.
And now that the one hour time frame broke below the bottom of its up channel and entered into the sell zone, we are looking for selling ideas.
Entry: Counter trend line break bearish in the sell zone.
Stop: In the buy zone above the entry.
Once or if the market gives the one hour entry, it will be a good idea to turn to the five minute time frame and to look for Tunnel Trader short / Chandelier Trader short / Destination Trader short ideas towards the one hour price target.
The Bottom Line
Much of my research lately has been focused on the downside for the major stock indexes…
However, there are bullish ideas to be found as well, particularly in the crude oil (CL) market.
If you want more guidance on the energy market and how to trade it, my colleague and energy sector expert Anthony Speciale is who you need to check out.
To learn more, check out the important P.S. below…
Then, for more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.
I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.
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Keep on trading,
P.S. My colleague and energy expert Anthony Speciale continues to show the way to profits from the petrol patch…
To learn more about the technical analysis strategy he’s using to build a “pipeline of profits,” click here!
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