Yesterday morning, during the live coaching sessions, we anticipated the e-mini Nasdaq futures (as well as the mini Dow, e-mini Russell 2000 and e-mini S&P 500) to go down. And it did after the 10 am market report. But where will it go today?
A quick analysis of the higher time frame indicates that the market is likely to retrace this morning. First, it is at a potential support area. Second, the Stochastics is overextended to the downside (no big surprise). Once the retracement is complete, then, if price finds support, the downward move could resume.
While a trader could enter off the higher time frame chart, a better option would be to zero down in time for confirmation. Currently, with only about ten minutes remaining, the move to the upside is being confirmed along with a magenta peak (confirming a retracement for resistance is needed). Of course, it is also necessary to determine where the likely retracement will end, as well.
Nasdaq Futures Potential Resistance Areas