The Nasdaq 100 as described by the NQ Emini is once again leading the way higher for the YM Emini and the ES Emini which continue to remain rangebound at their respective volume point of control on the daily chart. But for the NQ Emini, this is once again making a concerted attempt to break free and develop the current bullish trend further, and whilst yesterday’s price action was far from strong, it did hold above the key level denoted with the red dashed line which has acted as both support and resistance over the last few days. Yesterday, it acted as a platform of support following the breach on Tuesday. The accumulation and distribution indicator on NinjaTrader develops these levels automatically based on the number of times a level is tested or retested and presents this data as ever thicker lines. The wider the line the stronger the level and as we can see we have two levels, one at 8600 and the other at 8900.
So where next for the US indices and the NQ? From a technical perspective, we have a further region of price resistance now awaiting at just below 9200 which is important for three reasons. First, if breached it will provide support. Second, this level denotes a break above the highs of last week. Third and last, we then move into a region of declining volume on the volume point of control histogram and as such we should expect the index to move through here with relative ease. So perhaps more cheerful news for longer term stock investors as the bullish rally continues.
By Anna Coulling
Charts from NinjaTrader and indicators from Quantum Trading
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