2024-01-18 - a daily price action after hour update - nasdaq

Good evening and i hope you had a good trading day. Bulls took over in the globex session and we never looked back. Yesterday i said in my short term outlook that we go up and we did.

nasdaq e-mini futures

Most bullish indix of em all. Many of the same as dax for today. Nq just reached higher prices. We are trading 38 points below the december high and i think we will get there. Can we touch the big upper wedge? Probably. Bull case is the 400 point rally from the weekly low yesterday which could easily go to the wedge line around 17250. Bulls even bought the 160 point dip midday to close at the highs. Bear case is that this is a trading range from 16950 to 17120. The selloff from bar 43 to 50 was deep enough to dampen the euphoric rally. We are also at the highs of the wedge on the daily tf. They also argue that this is a trading range inside a bigger one between 16450 to 17130. So the question is, how much more room is there for the bulls despite the selling pressure? I think the most reasonable case is, that above 17100 there were many trapped bulls from the december high who will gladly use this rally to exit out of their longs and that’s another reason why i think the upside is limited. But i also thought NVIDIA at 400$ was high enough, so bulls might just continue to dance until the music stops.

short term: sideways to down (weakly held and i will long on big bull bars)

medium-long term: big down

New swing short position opened for nasdaq. I think shorting above 17000 on higher timeframes is a no brainer.