The "Air Bubble" from 4-13-21 will most likely pop today or tomorrow. The 4-13 Overnight lift and 4-15 Overnight lift is mostly Index Futures price action. The Open Session decline on 4-14-21 was erased by the use of Overnight activity. Should the Open session activity not maintain price levels, the current price levels will not hold and pop the air bubble. Look for the NAZ to break below 13950 and start an accelerated decline to lower target levels. This is a contrarian call and is countertrend. Usually the air does not hold heavy open session selling volume. I am seeing some divergence in volume and this is hard to read, the long move may hold and avoid the decline. The 10YN action is supporting the move up, should this and other momentum change look to the decline follow through. The dip buying may start to fail at 14025.
Trade active:
1st test of 13950 held and NAZ did bounce 40 points.
Trade active:
1st upper test of 14024.5 was hit/stopped. The NAZ is now at the 14000 level, watch the close.
Trade active:
Should the upper target of 14025 be broken, the upper target is attached.
Order cancelled:
The NAZ did get to 14034 and closed at 14018. Look for any weakness in days ahead, we should see how the "Air Bubble" deals with heavier selling volume. The activity has been mostly buying with yesterday being the only day in weeks that had significant selling. The 10YN action appears to be a short squeeze, this may limit the NAZ/10YN correlation to upside.
