NQ Futures levels to watch
Another interesting day... Facebook played out less than desirable but the writing was on the wall. FB expected to and did beat earnings but not in an impressive fashion. Revenue growth was up a whopping 25% year on year BUT cost and expenses rose a stunning 34%. In the post market session, FB fell by roughly 7%. We will see how this shape the market.
Conversely, I forgot Microsoft was posting earnings as well. MSFT beat earnings by 14% and revenue increased by 3.4% resulting in a 3% spike in price post market close. Will this balance FBs inefficiencies?
Tonight in futures will be interesting as we enter into a cross roads of many technicals.
Bottom Up:
1) RSI is neutral - could go either way
2) MACD is trending down but still overall neutral
3) Upward Trend Line (white) has now been added to show additional levels of support beyond the horizontal support levels. I lean towards (near-term) the trend line holding barring the horizontal support levels giving way.
4) Unmarked and somewhat masked are the EMAs. They sit nearly identical at 9099 and 9097 giving way to a break in either direction.
Caution: A break below the trend line will give way to 8900 as the last near term level of support. Post that, there may be a while before NQ finds other support
There are 3 scenarios with levels here to keep an eye on.
1) Preferred: Price action bounces off the 9040 support line and rallies back to all time highs
2) Price breaks below 9040 on impulse but not sustained; double buttons and rallies to a double top
3) Price action bounces off the 9040 support line and rallies back to recent highs and support turned resistance at 9150
I lean to preferred #1 due to microsoft strong performance and an expected strong performance by Amazon earnings enticing investors to buy and drive the price up before and after earnings on Thursday and Friday.
For those looking to trade something other than futures, I will post on QQQ.
Conversely, I forgot Microsoft was posting earnings as well. MSFT beat earnings by 14% and revenue increased by 3.4% resulting in a 3% spike in price post market close. Will this balance FBs inefficiencies?
Tonight in futures will be interesting as we enter into a cross roads of many technicals.
Bottom Up:
1) RSI is neutral - could go either way
2) MACD is trending down but still overall neutral
3) Upward Trend Line (white) has now been added to show additional levels of support beyond the horizontal support levels. I lean towards (near-term) the trend line holding barring the horizontal support levels giving way.
4) Unmarked and somewhat masked are the EMAs. They sit nearly identical at 9099 and 9097 giving way to a break in either direction.
Caution: A break below the trend line will give way to 8900 as the last near term level of support. Post that, there may be a while before NQ finds other support
There are 3 scenarios with levels here to keep an eye on.
1) Preferred: Price action bounces off the 9040 support line and rallies back to all time highs
2) Price breaks below 9040 on impulse but not sustained; double buttons and rallies to a double top
3) Price action bounces off the 9040 support line and rallies back to recent highs and support turned resistance at 9150
I lean to preferred #1 due to microsoft strong performance and an expected strong performance by Amazon earnings enticing investors to buy and drive the price up before and after earnings on Thursday and Friday.
For those looking to trade something other than futures, I will post on QQQ.
