Tuesday’s trade saw the buyers return in mass to start the session. The NQ raced above 14500 and then above 14600 reaching the morning high at 14685 before pulling back. Resistance at 14644 did provide a “pivot” point for much of the session with the NQ again reaching an additional high in the last hour at 14690. While I discuss in tonight’s update that I can count 5 waves up to the 14690 high I still feel it is necessary to keep open the potential for additional highs and a break above 14700 and on up to next Fibonacci resistance at 14845. Over the last seven trading sessions the NQ has rallied 1747 points, which is very impressive in the face of what is happening globally and economically within the U.S. Nonetheless up we have gone across the board. I again want to suggest that as traders we need to remain open to the technical picture when trading, since it appears the markets are trading technically. I am a day trader – I have learned the “hard” way not to get married to any position because of my own opinion. I trade according to the price action and how it relates to the moving averages and other technical indicators such as point of control, value area highs and lows plus VWAP. If the markets are being traded technically it seems logical to get on the same “plain” as the markets to trade them with greater success. I update the resistance levels for the NQ in tonight’s update and discuss what to expect should the top be in and the next down sequence is ready to begin.
March 22, 2022