Market Analysis and Trades for 12/2
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The weekly post for SPY 0.00%↑ and QQQ 0.00%↑ should be reviewed prior to this. It can be found here Market Analysis for the Week of 11/30
After the nasty Sunday night open (on NQ in particular) Friday’s spike (6857-6864) was rejected. My bias from the weekly plan was that Friday’s low (6831.25) would be taken out, and 6824 would be seen bringing the daily timeframe back into balance from active trend.
The spike was rejected and ultimately resolved to 6802 at the overnight low. Buyers recovered and opened just above 6809.5-6812.5 on a true gap down (below the prior day’s RTH low). From there we just play the rules of a true gap down, for which the following applied:
Notice the opening drive higher, and two subsequent tests of the open and 5-minute opening range low which held. The first test produced a nice long straight to the weekly 41-45 level. It rejected soundly, but sellers still found no traction below the open. This ultimately led to a break of 41-44 but bulls ran out of gas just shy of Friday’s spike.
This new multi-day balance will now determine if a daily higher low is produced to continue higher for an ATH retest, or if more of last week’s move is given back. In tonight’s plan I’ll discuss the current and prospective edges for this balance and how I’ll trade it.
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