In today’s market update, I show how excited the markets are about all of us getting back to work. The bullish moves are continuing across the board as all the markets, even the poor Russell 2000 are breaking out to the long side. But there is a caution to warn you about, and I’ll show you in today video.
From the charts
The daily chart is my favorite chart for looking at trends. The S&P e-mini (ES) is coming right up to the 3039.50 price we identified last week, falling just short at 3035 overnight, on good bullish volume. The Dow e-mini (YM) also broke out with bullishness, headed for 25842 on the upside. The Russell e-mini (RTY) also broke out long and is tagging it’s overhead resistance target of 1440, again pointed out last week. All of these are with good buying pressure.
However, the biggest bull of them all is starting to show signs of a potential reversal/correction… and that’s the Nasdaq e-mini (NQ). Yesterday closed with a big old volume reversal signal just as it entered overhead resistance (supply zone). As the other market reached for the stars, NQ tried and failed, with a huge amount of selling pressure. If this continues, the downside potential of NQ is around 9144, and if so, the rest of the market might be following.
The Hawkeye Perspective
Understanding and using supply and demand theory with price action is important, if you want to know where price is going. Using volume to know where price is going is the key. Learn to trade the Hawkeye way.