NQ1!, Market is Trapped in the Maze of Inflection Levels
I have highlighted a box where the market spent the last week. A concentration of inflection levels coming from different timeframes: weekly, monthly, quarterly. No wonder the price has a hard time to take off. The Friday's action ended right at the quarterly R2. Looking at the bigger picture: the Elliott wave aficionados may recognize a formation of the wave 4. The market may spend some time consolidating in that box before either make a run to complete the wave 5 or fails. I placed some directional arrows to watch.
The last week action slightly breached the lower edge of the weekly expected move picked by the options market. Market behaved as expected.
For the upcoming week the options market set the following range: 15890-16520. That supports an idea of a consolidation within the wave 4 with a potential to make a marginal new all time high.
The volatility and the range remains elevated. That offers good setups for short term traders.
The human traders have a big advantage - they can see the market holistically, they can learn to hear the context through the noise of the market action.
Good luck.
11/14/2021
The last week action slightly breached the lower edge of the weekly expected move picked by the options market. Market behaved as expected.
For the upcoming week the options market set the following range: 15890-16520. That supports an idea of a consolidation within the wave 4 with a potential to make a marginal new all time high.
The volatility and the range remains elevated. That offers good setups for short term traders.
The human traders have a big advantage - they can see the market holistically, they can learn to hear the context through the noise of the market action.
Good luck.
11/14/2021
