With the big selloff last week, the major indexes remain under pressure.
In particular, the Nasdaq 100 (NQ) dropped 5.8% last week.
The market hit the top of the daily channel and pulled back, and we are now expecting more downside ahead.
Read on to see how the market is setting up for the next short idea…
Putting the Pressure On
Here’s how the chart is shaping up…
The NQ one hour time frame is in a downtrend.
The market is moving from a low price towards a future high price.
It will be a good idea to wait for the market to come near the down trend line before looking for selling ideas towards the daily down Fibonacci.
Entry: Counter trend line break bearish near the down trend line.
Stop: In the buy zone above the entry.
Once or if the market gives the entry, and as long as the market stays in the sell zone, it will be a good idea to turn to the five minute time frame and look for Tunnel Trader / Destination Trader / Chandelier Trader short ideas towards the predicted price target.
The Bottom Line
There are multiple ways to trade the futures, stock and other markets. We can trade the indexes, both up and down, as well as individual stocks…
But my colleague and equities pro Ross Givens has come up with a brand new strategy that aims to deliver weekly gain opportunities without ever holding a single stock.
If you’re interested, check out the important P.S. below…
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.
And before you go, head on over to the Traders Agency YouTube channel for breaking market news, live trading sessions, educational videos and much, much more!
Keep on trading,
P.S. My colleague and expert stock trader Ross Givens just unveiled his brand new “rapid cash” strategy that is totally market neutral.
It doesn’t matter if a stock goes up or goes down… With this strategy, Ross can set up his trades to win in either direction.