S&P, DOW and Nasdaq After the First Week of Trading in 2021

With the first full week of trading completed in 2021, we’ll review where the major markets ended in relation to technical levels.

Specifically, we’ll focus in on 6 markets:
1. S&P 500
2. DOW
3. Nasdaq
4. Russell 2K
5. Gold
6. Bonds

In the 4 major indices, we’ve tagged major Fibonacci extensions. While the S&P and Russell has hit its 1.272% extension, the Nasdaq has tagged its 2.00% extension. The DOW, on the other hand, has yet to hit any major extension from the Feb-March 2020 swing.

For

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Nasdaq Futures (NQ) Trade Walkthrough

In this video, we will do a step by step walkthrough of the 4 major index markets, spending extra time on the Nasdaq futures (/NQ).

We had trade setups that triggered on the Nasdaq and Russell futures, both of which were fairly nice winners. The Nasdaq hit both its first and second targets, while the Russell hit its first target only.

With the S&P and the DOW futures, we did not have any triggers that met our Volatility Box Trade Plan rules. The S&P (/ES) breached our Volatility Box entry li

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Scalp Setup on S&P 500 Futures

By 7 AM PT, the Volatility Box allowed us to get a quick measure of ranking of volatility within the 4 major indices markets.

Today, that ranking was the following (in order from least to most volatile):
1. ES
2. NQ and YM
3. RTY

The S&P 500 was the least volatile market, still respecting our Scalper Volatility Box. Meanwhile, the DOW and Nasdaq had both broken outside of the scalping models, suggesting more volatility than its peer.

The Russell 2000 was the most volatile, having breached ou

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Post-Election Volatility Trading

With the election being a close race, we had a good deal of uncertainty that translated into volatility for our 4 major index markets.

During the after hours activity as the election results were slowly trickling out, we saw the S&P, Nasdaq, DOW and Russell futures all moving wildly (with the NQ up 3.5%+ in after hours). This same volatility continued into the market place today.

As a result of this volatility, we had a variety of different trading opportunities set up, which we’ll discuss in

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Pre-Election Volatility in the S&P 500

With the election tomorrow night, we’re starting to see some of the “funkiness” that we would expect from pre-election night volatility in the S&P 500.

Specifically today, we had the market internals suggest to us to expect more buying pressure as the day progressed. We also saw a steady rise in the Cumulative TICK indicator, suggesting more buying than selling pressure.

However, when you contrast that with what price action actually did, we’ll see a much different story. Instead of price go

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