This is why you must follow NQ, NDX futures. The high today was the gap open from February, obvious resistance. Should we enter the gap (1828.25), the potential for a gap close is very real, at 1858, which is right near monthly R1 at 1856. That is the bear's nightmare scenario. I must caution bulls that these types of gaps do not necessarily fill 100%, in fact we could stall half way in there at around 1844. Nevertheless, keep this chart handy. Failure for bulls to pierce that gap open at 1828.25 on a 15 mn candle closing basis could start a pullback, but once we are in the gap, anything can happen. I don't have to add that a move above 1858 sets up new highs for the markets. NQ trades at a 20 point premium to NDX (this week).
MOT issues a warning after the close and now we can definitely tag resistance at NQ 1828.25, Feb gap open.
Financials were leading today in what could be a knee-jerk reaction to possible lower rates. I'm not sure lenders are out of the housing mess, but for now no one is asking questions. If you love the long side, I would stick to techs. SPDRS
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on Wednesday, March 21, 2007 at 3/21/2007 04:22:00 PM.
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3/22/07 7:01 AMForgive me if I am slow, would you elaborate on this comment; "MOT issues a warning after the close and now we can definitely tag resistance at NQ 1828.25, Feb gap open."
3/22/07 10:01 AM
That was an update. MOT warns and so 1828 will definitely be resistance.
It is now proving to be correct.
3/22/07 10:35 AM
So, tag and retreat. I see its was stiff resistance. This spike should set up some good short opportunities in the next couple of days.
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