ES & NQ - the corrective bounce could make the top yesterday
My primary scenario is that we have been dealing with a corrective -a-b-c- up bounce that has hit resistance in ES and NQ yesterday.
It is possible that the rally in wave -c- up extends higher but in corrective -a-b-c- up structures the micro structure of the final leg of subwave -c- very often gets completed without that final micro push of a micro wave v.
NQ - 15 min chart updated at 8-40 AM on 3-1-2021
As we expected ES dropped into the Green Target overnight and found support there. The bounce off that support does not look strong.
Now we can set a stop for a bullish scenario under the low made overnight at 3,866.25.
As long as bulls hold ES over that support level they can push ES higher in wave -v- up targeting 3,935.
That move up is not a high probability scenario.
But if bulls manage to make a higher high in wave v up that would be a strong argument in favor of a bullish scenario where this rally is wave (A) and that means after a pullback in wave ( B ) both ES and NQ would be able to make new higher highs. Inability to get over highs made on Monday would be a bearish argument in favor of the primary bearish scenario that expects another move down under the lows made last week.
ES- 15 min chart updated at 8-40 AM on 3-1-2021
Previous Updates:
Important Disclaimer
CastAway Trader LLC, the publisher of this web-site and videos is not registered as an investment adviser nor a broker/dealer with either the U. S. Securities & Exchange Commission or any state securities regulatory authority. Users of the website www.castawaytrader.com and viewers of the videos are advised that all information presented on the website is solely for informational purposes, is not intended to be used as a personalized investment recommendation, and is not attuned to any specific portfolio or to any user’s particular investment needs or objectives.
Trading stocks, options, or futures carries a high level of risk, and may not be suitable for all investors. Before deciding to trade, you should carefully consider your objectives, financial situation, needs and level of experience. CastAway Trader LLC provides general overview of trading methods that does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. All trading setups and/or trades presented in the web site and/or trading chat room by CastAway Trader an/or by other members of the chat should be considered hypothetical for educational purposes only and should not be expected to be replicated in a live trading account.
An investor could potentially lose all or more than the initial investment. You should not speculate with capital that you cannot afford to lose. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style.
You should be aware of all the risks associated with trading. You should seek advice from an independent financial advisor.
Any information posted on this web site is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All users of the website must determine for themselves what specific investments to make or not make and are urged to consult with their own independent financial advisors with respect to any investment decision. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. All opinions, analyses and information posted on the website are based on sources believed to be reliable and written in good faith, but should be independently verified, and no representation or warranty of any kind, express or implied, is made, including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, CastAwayTrader LLC and its officers and employees undertake no responsibility to notify such opinions, analyses or information or to keep such opinions, analyses or information current. Also be aware that the owners, officers and employees of the web site www.castawaytrader.com may have long or short positions in securities that may be discussed on the website, Premium Trading Chat room and/or in the videos posted by CastAway Trader LLC.
Past results are not indicative of future profits.