There’s NASDAQ and an up channel
Last week’s previous idea, the market was inside of a down trend line. We broke into the buy zone and we started making higher highs and higher lows. But you got to understand with these markets. These markets, they’re like a puzzle piece. They’re like puzzle pieces and the puzzle image is continuously changing. And so we’re continuously investigating.
So last week we did not have an up channel, but this week we do have an up channel. So if you can imagine, if you can take on the mindset when you analyze the markets that we have this picture and this picture changes, it does. And when you look at this picture, you get clues along the way, but you don’t get the clues all at one time, you get clues along the way.
And what we’re trying to do is we’re trying to say, what is this? What are we looking at? Is it one thing? Or is it another thing? But then what ends up happening is it becomes relatively straightforward. And once you understand what it is, then ultimately you will be able to make a decision. You say, oh, I now see what it is, but it doesn’t happen all at one time. It just doesn’t.
So when we look at this, we are constantly re-evaluating, re-setting, re-evaluating, we’re re-setting. And at the end of the day, it comes down to when we turn on our computers, where is the market u-turning? And what you can see here is you can see that we have an area at this bottom blue level where the market forms low. So the market goes up, the market goes up, the market goes up.
This was not here last week, simply because we didn’t have this information. We didn’t have these highs. We didn’t have these lows, but now this is here.
So why do I say that? I say that because when you apply your analysis, especially if you’re looking at shorter term movements, it is always a decent idea, basically weekly to not erase your analysis, but essentially open up another chart and say, hey, if I were to analyze this today with today’s information, would I come up with a different analysis?
And you’d be surprised how often you’re like, okay, general information is the same, but the analysis is different. What I mean by that is, last week we were looking for upward movement. This week, we’re still looking for upward movement, it’s just we have a different range.
So we have a bottom blue level where the market forms lows, and we have a top blue level market forms highs. Now, if you notice these angles are the same angle. They’re parallel to one another, and that’s pretty normal. The angle that pushes the market up is usually the angle that pushes the market down.
Expecting this market to continue upward
So this week’s idea is NASDAQ 100 to basically say, hey, we’re expecting this market to continue upward. It’s about a thousand ticks, okay? And we’re going to expect a bullish trend to form, higher highs and higher lows were just starting to form.
But here’s the thing now. We now understand that we’re inside of an up channel and that empowers us with some information, which means if this market wants to, it could come back down to the channel, from a low, and then u-turn back up. And that’s a possibility if that’s what the market wants to do.
All right everyone. That’s this week’s idea. This is Joshua Martinez. NASDAQ 100 looking for about a thousand ticks of upward movement and we’re inside of an up channel.