NASDAQ Trading Parameters and commentary for Tuesday
Our combined analysis of for Tuesday tells us to expect the market to begin the day with a bias to increase. A test of initial resistance levels should occur if initial support levels remain in tact. For Tuesday, initial support should also be treated as inflection. The market appears to be in the process of oscillating higher, even after Monday's pause. However, in order for the uptrends that have been established in the midterm charts of the Dow and the S&P 500 to remain in tact, initial support levels must also hold. Alternatively, mid-term neutral trading patterns are likely to develop. Currently, the charts for the NASDAQ appear to be much more reliable than the charts of the other markets. However, the markets are still in relative parity, and they offer the same general read. Our combined analysis tells us to expect higher levels if support remains intact. The bias is up, and if support levels hold the increases could be aggressive. Moderate declines are likely if initial support breaks lower instead, but this seems less probable right now. However, if initial support breaks, the momentum will break along with it, and the playing field could change for a while. Specifically, treat 1603 as inflection. If that support level holds expect the market to increase to 1622, and then prepare for higher levels. However, if 1603 breaks lower instead expect a decline to 1583 and then expect the market to stall. Over time, our combined longer-term analysis adds, a test of longer-term resistance levels is expected.
|Initial intraday trading parameters for the NASDAQ exist between 1603 - 1622|
|If 1603 breaks lower expect 1583|
|If 1622 breaks higher expect 1722|
|2515 expect 1603 - 1622 to hold|
- We trade QID and QLD actively in conjunction with this strategy