NQ1!, Approaching a Gap and 7400 Inflection Point

In the RTH, the buyers were active from getgo not giving a chance to enter long. I’m sure it is annoying for retail traders but this is the current state of the market. Seeing some divergences one need to be careful with longs from aggressive location. I was thinking about a short opportunity and was looking for a failure. The QQQE index that tracks Nasdaq equal weighted hit all time high and that impacted the futures and a short setup got materialized.
In a very bullish environment shorts are required a precise timing and a proper target management. Otherwise better to skip them. The short created a strong momentum and in real-time a daily candle looked horrible for the bulls. But the sellers failed after a slight violation of the support. That presented a long opportunity.

At this point we may see some continuation to upside, the 7400 resistance is a confluence of a round number and a gap left from October. The large cap techs continue to prop the price. Until the buy back stops we may see the price at higher prices and low volatility.

If today’s low is taken out it could put some selling pressure but I expect the buyers to be active at every support.

03/18/2019