Yesterday was a nice bullish day. Price tried to take out Friday's candle, came pretty close, and got rejected by the sellers. Today the sellers are dominating, and price has almost given back half of yesterday's candle.
This is trading education, not a signal or a promise.
THE LEVELS The next stop is 29,373. If price holds there, great. If not, the next level down is 29,135.
THE ONE HOUR One of two things happens from here. Price bounces to the upside and revisits 29,648, which doesn't look likely today. Or it opens below, prints a nice rejection candle, and slides all the way down.
Levels drawn before the open
Every level below was drawn on the chart before 9:30 ET and checked against the price axis. Each one was graded after the close by the same fixed rules, whichever way it went.
| Level | Role at the open | Result | What price did |
|---|---|---|---|
| 29,648.18 | resistance | broke | reached 10:00 ET, a 5-min close 69.57 pts through at 10:05 |
| 29,373.82 | support | not reached | never within 5 pts; closest 17.93 pts away |
| 29,135.00 | support | not reached | never within 5 pts; closest 256.75 pts away |
Session 09:30-16:00 ET: open 29,594.00, high 29,903.50, low 29,391.75, close 29,687.75. Reached = traded within 5 points. Broke = a 5-minute close more than 10 points through after reaching it. Held = reached and never broke. Support or resistance is set by where the level sat against the opening price. A level is a reference drawn in advance, not a forecast, and a held level is not a trade result.
The plan
It looks very bearish. The target is Sunday's 6 PM open candle on the one hour, the October 18 candle: take it out. If some crazy news pops out of nowhere, that whole candle could go today. If not, tomorrow.
A level is a reference drawn in advance, not a forecast.
In the video
- 0:00Tuesday: NQ down about 210, no news
- 0:12Yesterday: rejected under Friday's candle
- 0:22Today the sellers are dominating
- 0:30The levels
- 0:42Next stop: 29,373
- 0:50If not, 29,135
- 0:53The one hour and the trend lines
- 1:21A real bounce, or a rejection and a slide
- 1:39Revisit 29,648? Not likely today
- 1:48Take out the October 18 6 PM candle
- 2:06Crazy news could take it today
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.