- The NASDAQ 100 Index initially felt during the trading session on Tuesday, to reach down toward the downtrend line that we have seen cause quite a bit of dollar pressure in this market
- Recently, we had broken above there, and it does suggest that we have now tested it for potential support.
- This is interesting, considering that the FOMC meeting is occurring over the next 2 days, and we obviously have a major news announcement and press conference coming after that meeting concludes.
Good Scalping Environment for Range Bound Traders
It’s also worth noting that the 200-Day EMA sits just above, so I do think that we probably have a lot of noisy behavior just waiting to happen in this situation. The 200-Day EMA quite often attracts a lot of attention, so you need to think of it in the terms of a lot of noise, and more or less a grind when it comes to the attitude. Alternatively, the market will be paying close attention to Jerome Powell, and what he has to say as far as monetary policy. Furthermore, we also have the jobs number at the end of the week, so that will more likely than not have a lot to say as well.
A breakdown below the lows of the trading session on Tuesday falls below the downtrend line and starts to look at the 50-Day EMA as a target. I’m not exactly sure which direction were going to go yet, but we are most certainly at an area where we are going to have to make a bigger decision. The safest way to play this market is to let it form some type of impulsive candlestick and then follow it. This will be especially true if it’s after the day on Wednesday, or even Friday.
In the meantime, I think you view our range bound trader, it’s probably good scalping environment. I have been playing the NASDAQ 100 on short-term charts as far as day trading is concerned, but this is with a very small position size and quite frankly it’s more or less just to entertain myself. After all, I’m not risking enough to cause any real damage to my account, and that’s probably the most important thing you can do right now is to protect yourself from massive swings. Ultimately, this is a situation that could be very noisy, but at this point we should be getting very close to a your move.
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