NAS100 & SPX500 - WHAT IS HAPPENING TODAY? (CONFLICTED)
Updated
We are at a pivoting point in the markets, everything seems to be bullish and yet I have this bearish itch. Markets seem to be overpriced, notably the NQ. However the S&P500, has had a healthier correction and the continuation of its rally makes more sense.
Since both markets are highly correlated, it would be absurd to short the NQ while the S&P500 looks so bullish. Why do I want to short the NQ? Technically it hasn't retraced as sanely as the S&P500 but that may be the nature of both markets. The NQ being more irrational (more speculative) than the rest, especially with the AI craze.
So here's my two cents worth on the matter!
What is on the charts? (follow the steps)
1) Highs that wicked many times in the daily bearish FVG.
2) Significant high that as I'm writing this has been taken out.
3) The retail sales session that took out lows and this is also what has me question the rally. If it is supposed to be bearish info why isn't price dropping? These are the reasons why I do not trade on certain days because I do not see clearly all the time.
4) Asian session lows, a great target for shorts.
5) A retest (or break of the daily FVG). I am not a breakout trader which is why I am not focusing on the bullish outcome because I couldn't tell you how to trade it optimally.
6) The bearish structure (that may never present itself). This all depends on the S&P500, for me to accept a short I need that double confirmation. So right now I accept everything as bullish unless shown otherwise.
7) Asian session lows taken out.
8) Finally the healthier correction that I'd want for the NQ to accept a more bullish approach.
As always, happy trading everyone and have a lovely day! ;)
Since both markets are highly correlated, it would be absurd to short the NQ while the S&P500 looks so bullish. Why do I want to short the NQ? Technically it hasn't retraced as sanely as the S&P500 but that may be the nature of both markets. The NQ being more irrational (more speculative) than the rest, especially with the AI craze.
So here's my two cents worth on the matter!
What is on the charts? (follow the steps)
1) Highs that wicked many times in the daily bearish FVG.
2) Significant high that as I'm writing this has been taken out.
3) The retail sales session that took out lows and this is also what has me question the rally. If it is supposed to be bearish info why isn't price dropping? These are the reasons why I do not trade on certain days because I do not see clearly all the time.
4) Asian session lows, a great target for shorts.
5) A retest (or break of the daily FVG). I am not a breakout trader which is why I am not focusing on the bullish outcome because I couldn't tell you how to trade it optimally.
6) The bearish structure (that may never present itself). This all depends on the S&P500, for me to accept a short I need that double confirmation. So right now I accept everything as bullish unless shown otherwise.
7) Asian session lows taken out.
8) Finally the healthier correction that I'd want for the NQ to accept a more bullish approach.
As always, happy trading everyone and have a lovely day! ;)
Note
Note
Again I am contrarian by nature but for now it is bullish!Note
Note
1) Bounce in the weekly FVG.2) Price took out high of 2023.
3) A lot of liquidity that is attractive for bulls.
4) Price retracing nicely into daily FVG and 0.618 fib.
5) Pivoting point that would either confirm or break the bullish structure.
Note
Sometimes it's easy to forget the bigger picture and that reality is sometimes simple to explain...
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