Swing short set up with 4550 target. Initial stop 4775
Certainly, NAS100 ($NQ) has shown a lot better performance than broader SPX, but the early signals of deterioration are here! Get ready for a swing short!
Daily:
- Ichimoku is bullish, but market reached some overbought level as price got very far above Kijun and Kumo. Should price break below Tenkan Sen 4705, a pull back towards Kijun will likely happen. Lower support zone is 4550-4600.
- Heikin-Ashi: what can I say? Impressive! That's why we love Heikin-Ashi! If you are disciplined it keeps you in the trend as long as possible! This was one of the most amazing trends I've ever seen on a daily chart, without printing a red candle since 29/June! However every wave has to pause, and markets consolidate or pull back. That's the new message of Heikin-Ashi: long wicked doji, followed by small red, followed by... so far a doji today. This is a consolidation pattern, shows mkt indecision (also reflected in haDelta at zero)
- EWO started to tick lower
4H (Some early bearish signals here):
- Ichimoku is turning neutral: average lines are flat, weak bearish Tenkan/Kijun, and Chikou hit past candles (may cross below, which would be next weak bearish signal)
- Heikin-Ashi price action is not bullish! As I wrote on Twitter two days ago, I was expecting one more spike to Kijun, which in fact happened. It seems price is refusing Kijun now! If it does, then 4695-4700 key support will be in focus! Please remember that SPX is already counter bearish, as Price is trading below 4H support. This could drag down NQ too.
- EWO also shows sudden and almost complete momentum loss.
Strategy: 0,5 unit short now, with initial stop at 4775. Increase to 1 unit size if market breaks below 4700 key. Possible tgt is 4550 +/-. Don't forget about money management! Always adjust and trail your stop!
Daily:
- Ichimoku is bullish, but market reached some overbought level as price got very far above Kijun and Kumo. Should price break below Tenkan Sen 4705, a pull back towards Kijun will likely happen. Lower support zone is 4550-4600.
- Heikin-Ashi: what can I say? Impressive! That's why we love Heikin-Ashi! If you are disciplined it keeps you in the trend as long as possible! This was one of the most amazing trends I've ever seen on a daily chart, without printing a red candle since 29/June! However every wave has to pause, and markets consolidate or pull back. That's the new message of Heikin-Ashi: long wicked doji, followed by small red, followed by... so far a doji today. This is a consolidation pattern, shows mkt indecision (also reflected in haDelta at zero)
- EWO started to tick lower
4H (Some early bearish signals here):
- Ichimoku is turning neutral: average lines are flat, weak bearish Tenkan/Kijun, and Chikou hit past candles (may cross below, which would be next weak bearish signal)
- Heikin-Ashi price action is not bullish! As I wrote on Twitter two days ago, I was expecting one more spike to Kijun, which in fact happened. It seems price is refusing Kijun now! If it does, then 4695-4700 key support will be in focus! Please remember that SPX is already counter bearish, as Price is trading below 4H support. This could drag down NQ too.
- EWO also shows sudden and almost complete momentum loss.
Strategy: 0,5 unit short now, with initial stop at 4775. Increase to 1 unit size if market breaks below 4700 key. Possible tgt is 4550 +/-. Don't forget about money management! Always adjust and trail your stop!
