August 24, 2017

Support and Resistance – ETF Extremes

Some Random Thoughts

The highly anticipated Fed announcement left much to be desired. Everyone knew that at least a 50 basis point cut was the most likely scenario, but most traders were hoping for a deeper cut of 75 basis points. The reaction was volatile after the announcement, but settled down towards the final minutes of the trading day to close lower.

On the heels of another successful ETF Extremes (read yesterday’s post) trade is an expected neutral market which is indicated by all of the short-term overbought/oversold readings below.

I am still focused on the tech-heavy Nasdaq 100 (QQQQ). There is currently a lot of wiggle room between the next area of support (approx. $29.25) and resistance (approx. $34.28) and with the ETF well within a neutral state I will once again wait patiently for the next setup. Sometimes signals happen in groups much like when the strategy was first initiated roughly 30 months ago. I guess we will find out soon enough. Sorry for the short post.

Have a great night.