Market Analysis for The Week Ahead
VIDEO Covering both ES and NQ the Week of 1/26
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I posted a “Trading Doggy Style Starter Kit” that I think will benefit both free and certainly paid subscribers. I will continue to build this out over time with additional videos, examples, and explanations.
Trading Doggy Style Starter Kit V2
Last week we had a video for the weekly prep which I’ve linked here for everyone. It is now all hindsight but there is likely at least some educational benefit for those inclined to watch it. It also provides some helpful context ahead of this week’s video. LINK: 1/19 weekly prep. This week’s video covers both ES and NQ.
Since Monday was a US holiday, we had a lot of futures only trading before cash even opened on Tuesday. We can see the look above and fail of 6071-6075 triggered weakness down to a retest of Friday’s low and the 6000-6004 spot. This was briefly swept on some Trump derived volatility and was back at 6071-6075 by the Tuesday cash open. Tuesday claimed and bid 71-75 and that was really it for sellers. The all hours and RTH only charts look quite different. Overnight price action matters quite a bit, but it is important to see what cash participants have to say about things.
By Wednesday cash open we had gapped above the 6104-6117 range which got us the new ATH on SPX as expected.
RTH Only
We may have gotten some potential early warning signs Thursday and Friday that perhaps this rally is due for a pullback, but thus far price remains objectively constructive. The concerns arise primarily from tech. We’ll focus much of this week’s video on NQ/QQQ because of this. To perhaps distill it down, one can look at XLK 0.00%↑
XLK had left relative equal highs in December which is often suggestive of an incomplete move (higher in this case). Wednesday and Thursday consolidated just at the prior ATH and then Friday bearish engulfed both preceding days. That said we can make an argument that it is simply a 3-day range sitting on top of a bull gap.
