Market Analysis and Trades for 5/13
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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 5/10
Yesterday we noticed a large seller in the NQ tape in particular. It therefore became more reasonable to look for shorts (at least initially) if sellers attempted to force balance today. If that was to happen, sellers would defend pops above 29435.
The early overnight session saw a brief excursion above 435 which was defended and futures trended lower the rest of the night:
I said in last night’s plan that re-reading the weekly plan would be beneficial. I tend to think it was. From the weekly plan:
Low of day was 7363.25 just below last Thursday’s close. The low is frankly terrible and the manner in which it reversed perhaps made it difficult to catch, but either way we have our 3-day balance.
For NQ from the weekly plan we were looking for a hold or LBAF of 28800-28817:
I feel pretty similarly about the manner in which the low formed on NQ, but it ended up as a pretty classic failed breakdown of 800-817 after initially holding.
Again, we now have a 3-day balance. This could extend to more than three days, but if you’ve been following along, you know what we’re looking for next.
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