Yesterday was a big bearish move to the downside, and price found support near 30,555 and is trying to bounce, at least halfway up the previous day's candle.
The levels from yesterday are still intact, so there is nothing new to draw this morning. The major resistance is 30,664.
This is trading education, not a signal or a promise.
Levels drawn before the open
Every level below was drawn on the chart before 9:30 ET and checked against the price axis. They are graded after the close by fixed rules, whichever way they go.
| Level | Role at the open | Result | What price did |
|---|---|---|---|
| 30,913.80 | drawn | after the close | |
| 30,776.07 | drawn | after the close | |
| 30,664.12 | drawn | after the close | |
| 30,505.52 | drawn | after the close | |
| 30,422.84 | drawn | after the close | |
| 30,318.94 | drawn | after the close | |
| 30,177.36 | drawn | after the close | |
| 29,581.20 | drawn | after the close |
The plan
On the one hour there is a healthy double bottom, and the trend line is drawn under it. The lean is continuation to the upside: take out yesterday's candle, and the next level above is 30,776.
The six minute adds a caution. A bearish engulfing candle at the top says 30,664 is a strong level, and after that rejection the likely move is a retest of the trend line. A close below the trend line opens a move down to retest the VWAP, the yellow line.
On the calendar, per the plan: JOLTS at 10:00, and Fed speakers between 12:40 and 1:40. Expect movement around both.
A level is a reference drawn in advance, not a forecast.
In the video
- 0:00Tuesday: NQ up about 80, around 30,651
- 0:08Yesterday's bearish move, and support near 30,555
- 0:23JOLTS at 10:00, Fed speakers 12:40 to 1:40
- 0:45Yesterday's levels are still intact
- 0:59The major resistance: 30,664
- 1:06A healthy double bottom on the one hour
- 1:16The trend line
- 1:27Take out yesterday's candle, and 30,776 above
- 1:43The six minute: a bearish engulfing at a strong level
- 1:53Rejection, a trend line retest, and the VWAP
- 2:06Questions, and ciycapital.com
Short clips from this prep
The prep is free every trading morning, with the levels drawn before the open. Get it here.
Trading education only. Not financial advice, not a signal, and no promise of any result. Full disclaimer.