Line in the Sand

Could you hear me attempting to cheer the futures higher pre-open this morning?  Fading the Nasdaq open was the correct call today. Too bad my mouse decided to freeze right as the opening bell was sounding.  It happens.  You disconnect the mouse.  Throw it against the wall, and plug in your spare.

Five candlesticks since the bottom tail low, and the Nasdaq places an outside candlestick around yesterday’s price action. It’s interesting to see that the close was on the daily trendline and 20-day moving average support. Two consecutive closes above the 20-day is mildly bullish.

Today’s lower low is a sell signal. It may be a false signal, and the 50 dma a target. The 200 ma on the 5-minute chart seems a line in the sand for now, as it held steady all day.

Trade below Nasdaq 2530 will have me considering a long in UltraShorts, QID and MZZ. Intraday charts that show some relative strength will have me watching QLD and MVV. Choppy action will allow me a 3-day weekend. I’m leaning toward option two. Suck a few more bulls in.  We’ll see what the market gives us.  Oh ya.  I didn’t really throw my mouse against the wall, but I definitely thought about it.