We exited our trade of the week for $1,200 gain. The critical point was yesterday’s open when we crossed the down trend line and moved up in the 3rd wave.
Holding overnight was a key decision. We put our stops at 4437, locking in 35 points yesterday, and at no point overnight did the Nasdaq get anywhere close. We were able to ride this wave to our target at 4463.5. Our goal was 4490 — the high of the day was 4489.5. Too bad we didn’t hold the trade all the way til then, but always better to take profits than to let them turn into losers.
Bought Nasdaq NQ at 4405 and sold at 4463.5 for roughly 60 NQ points = $1,200
Of the 3 indices, we bought the Nasdaq – because the pattern was clearest and upside potential seemed largest. That was a good decision.
The pullback during the day held 2086 twice – if we stay above, then we will get extensions up. I would be surprised if we break through the 2093 resistance region from April already – but then again I’m already surprised that we got here so fast.
2093 is such strong resistance, I would expect it to hold as resistance – but you never know. But if market is not able to take out 2086–which is 6 points from the intraday top at 2092.5, then we will have no choice but to go higher.
ES closed at 2087 — so we are very close to that 2086 line. Let’s see if it serves as support or breaks down and begins wave 4.
Looks like a triangle intraday. If we see extensions in nasdaq and S&P, then this should push the russell up one more time.
Breaking the bottom blue line would indicate the beginning of 4th wave potentially.