When the Nasdaq 100 broke out of major horizontal resistance, there was really only one course of action for a trader and that was to "buy". Buy in order to close out a short position or buy to initiate a long one. Some may say it had to do with the "jobs report", some may say "Draghi", but I don't know how to buy or sell based on "reports/news", "economic data", or "comments". It is best for me to stick to the auction.
The selloff after the breakdown from the balance area on the 30 minute chart nearly connected on the "Measured Rule" of the rectangle on the following day, but got stopped in its tracks at exactly the round number of 2,600 to the tick. Big round numbers should not be ignored.
There was not too much to talk about in regards to any noteworthy changes in the positions of the Traders in Financial Futures report this week. However Open Interest declined by nearly 10% in that week's consolidated report.
I will be conservative trading NQ to the long side next week as the volume on the breakout was timid in my opinion. I most likely won't be considering short trade setups in NQ unless it falls back beneath prior resistance at around 2,660 on Monday.
(Click on charts to expand)
A quick look at the S&P 500 mini futures and the perfect parallel channel I have touched on before is below.
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