I have personal things to tend to, so I am quitting early today.
I closed the NQ trade below a few minutes ago. I entered on a break of the weak candle as indicated by the white arrow. That candle tested the previous day's low which had been tested several times earlier this morning (and failed each time).
My initial target was the Fibonacci extension of the previous day's high to the previous day's low. As I looked back at the chart, however, I noticed that the gap from 10/10 to 10/13 had not been closed (see the second chart); knowing that gaps have a tendency to close - and this one was within range - I adjusted my target to the close of 10/10 (indicated by the white dotted line on both charts). Price dropped somewhat slow and orderly through the day to reach that target.
I am not sure where the NQ will go from here, but I suspect the downside is limited. If I was trading, I would be watching for a valid long setup.
Weekly Market Recap Mar 26, 2017
1 day ago