#202526 - priceactiontds - weekly update - nasdaqGood Evening and I hope you are well.
comment: Similar to dax and for most other markets. Cash index made a new ath and broke strongly above the trading range. This is W5 which I thought was cut short but I guess not. It’s most likely the end of the trend since the trading range went on for about 6 weeks, which in this case was likely the final flag. Futures could now aim to print 23000 and touch the bull trend line which began in 2021 and went though the ath from 2024-12.
current market cycle: resumption of the bull trend but likely the final flag and we most likely will top out here around/under 23000
key levels for next week: 22000 - 23000
bull case: Bulls printed 5 consecutive bull bars. They are in full control and could pump it to 23000. Purely based on momentum and squeezing shorts. Got nothing else for the bulls.
Invalidation is below 21500
bear case: Bears gave up on Monday and I doubt they want to fight this until we hit the bull trend line or 23000. Most bears will wait for a clear topping sign that bulls are beginning to take bigger profits before they think about shorts. As of now, bears have zero arguments on their side. Only a daily close below 22300 would confirm this bull trap and fake breakout above the bull channel and then we could test down to 21900ish but for now I think it’s most likely we go higher.
Invalidation is above 23100
short term: Neutral. Will only scalp longs on huge momentum and I will only start thinking about shorts once we break below 22300 again.
medium-long term - Update from 2024-06-29: No change in plans. I expect 20000 to get hit over the next 3 months and maybe 19000 again.
