NQ Bullish with Signs of a Potential Reversal in Early OctoberThe Nasdaq 100 ( CME_MINI:NQ1! ) futures continue to exhibit a strong uptrend, driven by market optimism and supportive economic factors. As seen on the chart, the Bonsai trend indicator remains bullish, signaling the ongoing upward momentum. However, caution is warranted as we approach a critical resistance zone, where multiple technical and external factors suggest the potential for a pullback.
Key Technical Levels and Signals
Resistance at 20,600 : The price is nearing a significant resistance zone between 20,500 and 20,600, where previous highs have been met with seller pressure. The market may struggle to break through this zone in the short term, leading to possible consolidation or retracement.
Bearish Strength on Oscillators : The Bonsai OS is starting to signal an incoming bearish strength, where the oscillator fails to make new highs while the price continues to rise. This divergence suggests that the current bullish move may be losing momentum, increasing the probability of a reversal or correction in the near term.
Short-Term Retracement : A retracement to the 19,800-20,000 region would be healthy for the overall trend, providing potential buying opportunities for traders waiting for a dip. This level aligns with previous support zones and retracement levels, making it a logical area for price to stabilize before another move upward.
Geopolitical and Economic Factors Affecting NQ
U.S. Elections and Tax Policy : The upcoming U.S. election between Vice President Harris and former President Trump is creating uncertainty around future tax policies, particularly regarding capital gains and unrealized gains taxation. Investors may start adjusting their portfolios as we get closer to October, historically a volatile month for the markets.
Global Conflicts and Economic Risks : Rising tensions in Ukraine, the Middle East, and Taiwan add further geopolitical risk. Market participants are keeping a close eye on potential escalations, as these conflicts could shift sentiment toward a risk-off environment, impacting indices like the Nasdaq 100.
Fed Policy and Economic Data : The Federal Reserve's recent rate cut has temporarily buoyed the markets, but upcoming data releases—particularly around inflation and employment—could change the tone. Economic surprises in early October could lead to volatility, especially if the data fails to support the current bullish narrative.
Conclusion: Bullish But Cautious
The overall Bonsai indicator continues to signal an uptrend, and the market looks poised to push higher if it can break through the 20,600 resistance zone. However, the oscillator's bearish divergence and external political risks suggest a potential reversal or at least a short-term correction in the first week of October. Traders should monitor these signals closely and consider adjusting their positions accordingly. Keep an eye on the VIX as well, which has been known to spike during periods of heightened uncertainty, offering opportunities to hedge against increased volatility.
NASDAQ 100 E-MINI FUTURES
QQQs Break Above Unique High Level On Moderate VolumeAnother sign the markets are attempting to break away from sideways/topping patterns is today's closing price on the QQQs.
Today's close above the Unique Fibonacci Price Theory High suggests the QQQs are attempting to break away from the Excess Phase Peak pattern and will likely attempt to move up into the 501-502 price range.
Remember, the first rule of Fibonacci Price Theory is Price must always attempt to reach new higher highs or lower lows.
When it fails to make a lower low, it must roll over and attempt to reach a new higher high.
In this case, as we neared to top of the Excess Phase Peak pattern, the Ultimate High, price would either fail to make a new higher high (and attempt to roll downward) or it would break to a new higher high (thus confirming price is still in a Rally Phase).
Today's close means my analysis of the general markets moving into a "cleared for takeoff" rally phase is starting to become much more valid. We have broken above the Ultimate High on the QQQs with moderate volume.
Now, we should expect the QQQs to attempt to move higher - toward the 501-502 level.
Get some.
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2024-09-25 Nasdaq / Nas100Hello, this is ViViD.
Let’s proceed with today’s NASDAQ analysis.
First, let's review yesterday’s NASDAQ analysis results. I mentioned that if a breakout occurs above the resistance trendline, there could be a buying opportunity. If you entered at the yellow box area after the breakout, you could have made around $50 in profit, which equates to approximately $1,000 profit per lot. Additionally, a selling entry point was also reached. Based on the entry point, around $70 profit per lot was made, equivalent to about $1,400 per lot. The total profit for yesterday was approximately $2,400 per lot.
Here is the daily chart of NASDAQ. Yesterday, NASDAQ slightly broke the previous high before dropping back down, changing its pattern from a pennant to a rising wedge. Although the buying pressure on the daily chart is strong, if it fails to break out with strong momentum, it is likely that the pattern will complete and a reversal could occur.
This is today’s trading strategy. First, let's examine the sell perspective. If the price breaks below the rising trendline and the yellow box at the price level of 20,050.75, I recommend entering a short position. Breaking below the rising trendline and the short-term bounce zone in the red box could signal a drop to the lower end of NASDAQ’s trading range. In this case, the price could potentially drop to yesterday’s low around 19,956. If we consider the two blue boxes, yesterday’s low was slightly lower, but there was a strong rebound in that area, suggesting that support around 19,956 remains strong. Therefore, the target for the sell position would be near 19,956. Even if the market sees stronger selling pressure, support from the green box on the left needs to be broken before considering a move down to the purple box. My strategy is to target the 19,956 area for the initial sell, and if the market breaks below the green box, I would re-enter the sell trade and aim for the purple box.
Now, for the buy perspective. In the case of buying, both a breakout of the resistance trendline and a breakout above the yellow box, which is around the 20,143 price level, should occur simultaneously to signal a trend reversal to the upside. The target for the buy would be around 20,190, which is conservative because the resistance between the 20,415–20,250 range is quite strong. It’s important to secure profits cautiously.
There are no major economic indicators scheduled for release today. Therefore, the market might remain steady, following the flow from the European session. If the market moves in one direction, the trend may persist until the end of the session. Have a successful trading day.
- ViViD -
NASDAQ rally until the end of the year supported by the 1dayMA50Nasdaq has held the 1day MA50 after the Fed cut last week and is extending the rally.
The long term pattern has been upward since the 2022 bottom supported by the 1day MA200, which is the best buy entry long term when touched.
The 1week MACD is about to form a Bullish Cross, which is formed after every bottom these past two years.
The main rallies during that time have been more than +30%.
Our target for the end of the year, as long as the 1day MA50 supports of course, is 22500.
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2024-09-24 Nasdaq / Nas100Hello, this is ViViD. Here is today’s Nasdaq analysis.
This is the daily Nasdaq chart. As I mentioned in yesterday’s analysis, for further upward movement to happen, the price needs to break above the resistance level of the supply zone. This would allow for potential entry from a buying perspective. However, the price movement has been sideways due to the supply zone's resistance, which hasn't yet determined a clear direction.
As we can see in the daily chart, the current pattern shows a pennant pattern, which could indicate a consolidation to the right before a potential continuation of the upward trend. On the contrary, it could also signify a peak, leading to a decline after breaking below the support level.
In the Asian session, we observed a break of the upward trend line. You can see the breakdown in the blue box. However, the rebound zone after the break is noteworthy. The white trend line indicates that the price is making slightly higher lows, establishing a form of support.
Thus, Nasdaq seems to be defending this zone. The key to focus on is whether the white short-term support line holds. The main takeaway is that while the trend is making higher lows and defending the price, the most critical point for a selling perspective is the break below the white support line at the lowest level of 20016.25.
Now, for a buying perspective: The optimal entry point seems to be when the price breaks above the blue box zone, which corresponds to breaking both the price level and the resistance trend line. The reason 20127 is significant is that the white box shows two instances of resistance at this level, making a breakout here critical.
Once the price breaks through, the targets would be at 20164, 20204, and 20264, with additional resistances along the way. However, this breakout could signal the pennant pattern's upward continuation, stabilizing the long-term trend for further upward momentum.
Today, we have the CB Consumer Confidence data, so be cautious of any sharp market changes after the announcement. I hope you have a profitable day!
- ViViD -
NASDAQ gave the best longterm bullish signal. Is 25300 possible?Nasdaq (NDX) confirmed the bounce on the 1D MA200 (orange trend-line) as argued on our previous analysis (September 09) and the rebound made the ultimate bullish break-out last week, as it crossed above the Lower Highs trend-line of the July 11 All Time High (ATH), giving us the most consistent long-term buy signal on a 2-year basis.
As you can see on this chart that goes as back as October 2022 and the bottom of the Inflation Crisis Bear Cycle, the two times that Nasdaq broke above such Lower Highs trend-line, while being above the 1D MA200, it gave the best buy signal possible, with both rallies peaking after a +49% and +48% rise respectively.
The Sine Waves have also confirmed early this month that the index bottomed and now we have the ultimate bullish break-out confirmation. The longer the 1D MA50 (blue trend-line) holds the better, but even if it breaks (April 2024), we still expect that we are on a similar Bullish Leg that should top in roughly the same way (+47% i.e. one percent less than the previous).
This gives us a long-term Target of 25300 for March - April 2025. We have plotted the Bullish Legs of 2023 and 2024 and as you can see, even though they diverge at times, they always converge again, forming a rough Channel Up, which can be a representation of our estimate course.
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NASDAQ: Clear path to 21,150. Checked all bullish signals.Nasdaq is on very healthy bullish 1D technicals (RSI = 60.054, MACD = 172.430, ADX = 25.087) as not only it crossed and closed over the LH trendline of the previous Top but kept the 4H MA50 as support and formed a 4H Golden Cross. The driving pattern seems to be yet again a Channel Up and this is its second bullish wave structure. Keeping the 4H MA50 intact should technically push the price to a HH. The previous wave topped a +15.55%, which is the basis for our target (TP = 21,150).
See how our prior idea has worked out:
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SP500 Futures Chart Now in Final Stages of 100 year RallyCycles are a normal part of life. The stock market is no different. In my long term analysis we appear to be headed up to an area that can complete a rally that started almost 100 years ago.
For context, this long-term consolidation will be similar to Japan's Nikkei index in which made no new high's for 34 years.
Nasdaq-100 Index. The Psychological Aspects of Round NumbersIn the complex dance of commerce and finance, price tags play a key role in influencing consumer decisions.
While it’s a fairly common psychological assumption that every penny and cent counts when it comes to getting the best deal, human psychology often deviates from this linear logic. In this educational post, we explore the irresistible appeal of round numbers, and how they often trump other considerations when making transaction decisions.
The Irresistible Attraction to Round Numbers
We do often believe that every penny counts in our transactions. However, research shows a striking deviation from this assumption. In scenarios where people choose a price, such as tipping at a restaurant or donating to beloved author or website, they disproportionately choose round numbers — like $ 5, $ 10 or $ 20 — far more than would be predicted by chance alone.
One could argue that this is due to the rejection of change, a reluctance to waste time on small change, and the unwillingness to bother with complex mathematics. However, even in cases where the exact bill is not an issue (e.g., cashless card payments), the preference remains.
For example, diners faced with a non-round bill (for example $ 34.67) are more likely to give non-round tips ($ 15.33), but only so that the total is a neat round number ($ 50).
Why do we prefer round prices? And what is the psychology behind it?
1) Cognitive simplicity: The human mind is programmed to simplify and seek simplicity. Numbers like 10, 50, or 100 inherently feel “cleaner” and less chaotic than 17, 62, or 84. This desire for neatness gives us a sense of accomplishment.
2) Perception of quality: The marketing world has long capitalized on this preference for round numbers. Brands strategically associate round prices with premium quality. On the other hand, odd prices like “29.99” or “34.99,” while ubiquitous, subconsciously signal here's a discount or a bargain.
3) This preference is not limited to prices. People exhibit this tendency to round in other aspects of life as well. Our repeated exposure to round numbers is common in a variety of contexts, both in everyday life and during financial transactions, which contributes to an unconscious bias toward them. This cognitive ease with round numbers further perpetuates the preference.
The stock market’s behavior and its fluctuations around these significant, round numbers is not a coincidence in general; there is a psychological explanation.
Market Psychology of Round Numbers
When the market reaches round numbers such as 500 or 1,000, 2,500 or 5,000, 10,000 or 20,000, it attracts the attention of both active traders and casual investors who may not even be actively following the market.
As in everyday life, people often use round numbers as thresholds for making investment decisions. For example, some may decide to enter the market if a major index such as the Nasdaq-100 has exceeded 10,000, or they may decide to sell some of their stocks if the Nasdaq-100 has reached 20,000.
These round numbers act as magnets for sellers as they mark important milestones given the relatively high rarity of a round number. If the market has the potential to move higher, it first needs to absorb the selling pressure around the round numbers and establish equilibrium before continuing its move higher.
If we analyze the market behavior over the last decades, we will see clear patterns at round numbers. Let us take a closer look at a few examples.
1) Indian Stock Index, Sensex BSE:SENSEX
Sensex, one of the major market indices in India, has its share of round number syndrome. For example, when Sensex reached 10,000 points in Q1 2006, it experienced significant market activity, with the index fluctuating by as much as 30 percent in Q2.
The same phenomenon occurred at multiples of 10,000.
Thus, at 20,000 points, which the Indian market reached at the end of 2007, the index collapsed by more than 60 percent over the next 4 quarters of 2008.
Later the 20,000 mark has been reached again in the second half of 2010, and the index again suffered a decline of more than 20 percent during 2011.
Later Indian stock market index reached the 30,000 mark in the first quarter of 2015, and its led to a price decline of more than 20 percent in the next 4 quarters, while 40,000 mark in the fourth quarter of 2019 - led to the market decline by 30 percent on the wave of COVID-19 sales.
2) Gold market OANDA:XAUUSD
As in the previous example, round numbers often become key points of congestion for Gold market, when the market tries to break even higher, but the forces of buyers and sellers may be unequal.
For example, spot Gold reached the $ 1,000 mark for the first time in the Q1 2008, which, following the logic discussed above, led to sales and 30 percent decrease.
Gold spot buyers have tried a lot to reach $ 2,000 mark in 2011, but it brought the market down by 45 percent over the next 5 years. There were also a lot of unsuccessful attempts to jump above $ 2,000 in 2020-2022.
Finally Gold spot surged above $ 2,000 only in Q4 2023, its led to further price increase, up to 2500 US dollars per ounce.
3) US stock index, Nasdaq-100 index NASDAQ:NDX
The Nasdaq-100 index approached the 10,000 point mark for the first time in Q1 2020, which could have contributed to the sell-off. In fact, this is what happened, as the market then plunged by more than 30 percent in March 2020, and only thanks to monetary support measures and the reduction of US interest rates to almost zero, the index was able to break the 10,000 barrier by the end of Q2 2020.
Reaching the 20,000 mark by the market index in Q2 2024, as we see, again leads to increased turbulence in US tech stocks and talk of imminent monetary easing by the Fed.
Final Thoughts
1) It is important to note that round number syndrome and increased seismic activity near rounds number is a short-term phenomenon. Once the selling pressure is absorbed, the market resumes its movement based on other factors and develops independently of these already passed milestones.
2) Understanding the market behavior at round numbers can provide valuable information to investors. These round numbers act as psychological triggers for investors, driving their decision-making processes.
3) Understanding this phenomenon allows investors to make more informed choices and understand the short-term fluctuations that occur during these stages.
Elliott Wave View on Nasdaq (NQ) Calling the Next Bullish Leg upShort term Elliott Wave view on Nasdaq (NQ) shows that rally from 8.5.2024 low is unfolding as a 5 waves impulse. Up from 8.5.2024 low, wave (1) ended at 20025.25. Pullback in wave (2) ended at 18338.45 with internal subdivision as a double three Elliott Wave structure. Down from wave (1), wave W ended at 19140.25 and wave X ended at 19693.50. Wave Y lower unfolded as another double three in lesser degree. Down from wave X, wave ((w)) ended at 18825.75 and wave ((x)) ended at 19150.50. Wave ((y)) lower ended at 18338.45 which completed wave Y of (2) in higher degree.
The Index has turned higher in wave (3) with internal subdivision as a 5 waves impulse. Up from wave (2), wave ((i)) ended at 18927.5 and pullback in wave ((ii)) ended at 18547. Wave ((iii)) higher ended at 19813.50 and pullback in wave ((iv)) ended at 19529. Near term, expect Index to extend higher to end wave ((v)) and this should complete wave 1 in higher degree. Afterwards, it should pullback in wave 2 to correct cycle from 9.7.2024 low in 3, 7, 11 swing before it resumes higher.
NQ-SP500-NKD-BTC, The wave has startedCME_MINI:NQ1! BINANCE:BTCUSD
CME_MINI:ES1! CME:NKD1!
The wave has started. It's slow, and choppy as they move through the time frames, so if you play the longer time frames, be patient. If you play the shorter time frames, ensure you take profit along the way so you're not chopped up
Video covers – NQ – SP500 – NKD – BTC
ES (S&P) – 100 pt price blocks (Bold Yellow Lines)
NQ (Nasdaq) – 500 pt price blocks
NKD (Japanese Market) – 1000 pt price blocks
BTC (Bitcoin) – 5000 pt price blocks
Legend
Bold Yellow Lines: Top and Bottom of Price Blocks
Dotted Blue Lines: 50% of any Price Block
White Solid Line: 20 EMA
Yellow Solid Line (not price block): 50 EMA
Blue Solid Line: 200 EMA
Method: Follow the MACD and the 200 EMA. Generally speaking, if the MACD is negative or heading negative, the price should be below the 200 EMA or heading below it, and visa versa, as it goes up to go positive, so should the price, and you should be targeting a price (at a significant level – price block) above the 200 EMA.
NASDAQ The index is well supported to hit 25k by mid 2025.Last week (September 09, see chart below), we gave a strong buy signal on Nasdaq (NDX) right as the price was testing the 1D MA200, a strong Support on its 2-year Channel Up:
The index duly delivered and we've completed 5 straight green days already. Not only that but the 1D candle closing above the 1D MA50, practically confirmed the bullish extension into this week.
The current week however isn't just a typical one, as we anticipate the Fed Rate Decision on Wednesday and even though the expectations are fixed on at least a 0.25% cut, the volatility is expected to be high.
As a result, to filter out this short-term noise, we will resort today to the wider 1W time-frame, which helps keeping a more accurate long-term perspective. In fact it was the same chart we published 6 months ago (March 18, see chart below), which very accurately laid out the Support that you needed to calmly buy on the long-term, which as you can see, it has been a recurring signal since 2010:
Every time the price broke above a Resistance, it was the ultimate buy entry if re-tested later as a Support. That happened in mid April and that's what happened last week as well.
In fact, the index made a strong rejection on the 1.5 Channel Fibonacci level and then tested and held the 1W MA50, confirming the emergence of a Channel Up (orange) similar to June 2020 - November 2021. The 1W RSI similarities between the two fractals are also further evidence of this.
As a result, we expect Nasdaq to reach as high as 25000 by mid 2025 (a little lower than our previous 6-month estimate but still good enough to be an excellent buy opportunity even now).
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NQ - SP500 - NKD - BTC Coming Week(s) - BearKey Points:
Video covers – CME_MINI:NQ1! - CME_MINI:ES1! - CME:NKD1! - BINANCE:BTCUSD
ES (S&P) – 100 pt price blocks (Bold Yellow Lines)
NQ (Nasdaq) – 500 pt price blocks
NKD (Japanese Market) – 1000 pt price blocks
BTC (Bitcoin) – 5000 pt price blocks
Legend
Bold Yellow Lines: Top and Bottom of Price Blocks
Dotted Blue Lines: 50% of any Price Block
White Solid Line: 20 EMA
Yellow Solid Line (not price block): 50 EMA
Blue Solid Line: 200 EMA
Method: Follow the MACD and the 200 EMA. Generally speaking, if the MACD is negative or heading negative, the price should be below the 200 EMA or heading below it, and visa versa, as it goes up to go positive, so should the price, and you should be targeting a price (at a significant level – price block) above the 200 EMA.
Nq1! Nasdaq Long term ForecastWhile many switch to a bullish bias for CME_MINI:NQ1! because of expectations of a interest rate cut on 18th of September, I remain bearish because markets price in before these events and the rate cut was expected for a long time.
We see on the daily chart a double bottom, which is market makers' favorite liquidity to take out.
Again on the daily chart, we see that price took out the buy-side liquidity and now is in the Daily Optimal Trade Entry of the last down move.
I expect to see the double bottom to be taken out in the upcoming weeks.
Please note that this can take a lot of time and we can still see a full recovery to All Time Highs before we take out the double bottom.
You can boost the idea for free if you have a paid plan and if the idea helped you.
Thanks for reading I wish you all good and safe trades.
NQ Chart Idea - Swing Long Trade SetupNQ made triple bottom in Oct, Nov and then in Dec 2022. Since Dec 2022, NQ made a diagonal support line which was briefly broken on Aug 5th dump but then closed the week above this support line. In that dump, it made a double bottom at 17350 which is super bullish. 17530 was also a 0.382 fib level which was tested and respected as it didn’t close any candle below that level. I am personally with this PA as well as market fundamentals. Below are just two target prices that I am showing but I will want to ride this trade until 20350 after updating my SL in green.
Swing Long Setup
Entry: 19000
TP1: 19600 (0.618 fib retracement level)
TP2: 19700 (Major resistance)
SL: 4Hr candle closing below 19650
RR: 2:1
NOT A FINANCIAL ADVICE! DYOR
NQ Bounce, But Momentum Remains BearishCME_MINI:NQ1!
Welcome back everyone. Video includes a quick review our the trading method, predominately used on higher time frames, but can be used on shorter time frames.
NQ still moving in a bearish momentum and expect more downside later this week. Short the pops, in my opinion, and look for a greater move later this week possibly on Thursday when PPI and Jobless claims are all reported. Friday should continue momentum of Thursday's trend (up or down).
Good luck!
Navigating the Nasdaq's Turbulence: A Peek into the Week AheadAs we head into the trading week, let’s zero in on some critical levels on the CME_MINI:NQ1! Nasdaq that are making the rounds in savvy financial circles. With a bit of a bearish vibe from the get-go, understanding these might just set the stage for some strategic plays.
Top Tier: 19,300 to 19,400
Keep your eyes peeled on this upper bracket. It's where the ceiling might just come crashing down with selling pressure. A lot hinges on how prices react here—will they retreat or break through unexpectedly?
Middle Ground: Around 19,200
Here lies the Fair Value Gap, a zone that often acts as a decision-making hub for the bulls and bears alike. If prices struggle to push past this, it might just reinforce the gloomy outlook for the week.
Entry Alert: Near 19,100
Thinking of going short? This could be your spot. The Optimal Trade Entry point around 19,100 is where the action could heat up, signaling a strong entry if bearish momentum continues.
Watch Your Step: Around 18,730
This level has history. It's served as a balance point before and could either prop up prices for a rebound or give way under bearish pressure, leading to further declines.
Base Camp: 18,300 to 18,550
Down here, if the floor gives way, expect the bears to rush in even stronger. It's a critical zone to gauge just how far the current sentiment could drag the market down.
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Abbreviations
D FVG - Daily Fair Value Gap
D OTE - Daily Optimal Trade Entry
Eq 4h - Equilibrium 4 hours
OTE 4h - Optimal Trade Entry 4 hours
NDOG - New Day/Week Opening Gap