Despite their best efforts, the bulls have failed to pull the Nasdaq 100 Index (NQ) futures contract out of its down trend.
For a while in mid-August, it looked like the series of lower lows and lower highs was coming to an end.
But the bears took over again heading into September and pushed the market back down.
Read on to see where we’re now looking for opportunities in the NQ…
Looking to Sell the Next High
Here’s how we see the market shaping up for the Nasdaq 100 Index futures contract…
The NQ daily time frame is in a down channel.
The market hit the top of the channel and is pushing bearish towards the bottom of the channel.
The market is making lower lows and lower highs. It has already hit the down Fibonacci extension and is expected to pull back.
It will be a good idea to wait for the market to form a high price below the top of the channel before looking for selling ideas towards the bottom of the channel.
The Bottom Line
Most people know me as a futures trader, but I also dabble in plenty of individual stocks.
And I have a new way of picking out opportunities in “marked stocks”… To learn more, check out the 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.
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Keep on trading,
P.S. Stock markets may be unsettled, or even bearish. But that doesn’t mean that there aren’t opportunities…
All it takes is riding the coattails of a stock after it’s been “marked.”
To learn more about how to identify and trade these specific stock opportunities, click here.
The post Why We’re Expecting Another Lower High in NQ appeared first on Josh Daily Direction.
