NQ1!, Is Correction Coming or was it just a Blip?

21 feb 2019

Today, the Globex buyers, driven by the news, made a marginal high and got just shy of the projected first target - December 2018 high. Before the RTH opening a few Econo reports helped to move the price lower. It was a bearish start that offered a short setup. Earlier in the morning the buyers regained the control and completely reversed the price filling the gap. Note: When trade against a short term bias wait for a good support level or wait for the market to establish a consolidation balance. The price did not reach my support level but it established and well defined balance which offered a long setup. The intraday balance breakout flipped the short term bias. Things were looking well for the buyers, however, in the afternoon session the sellers regained control again. This is not easy to trade when a short term bias gets flipped several times. But it offers the opportunities. The challenge is to recognize a failure of the other side. The buyers managed to close at the balance edge, see the box, leaving the traders uncertain about what to expect.

Notes for tomorrow:

-The bullish case is not negated by any means. The sellers could continue to push lower but I expect the buyers to step in at every support level.
- Both short and long setups should be considered
- Failure to hold today's low opens a door to retest bottom of the balance, see the box.
- Failure to push lower beyond today's low opens a door for upside move to retest today's high.

At this point a lack of data points prevents to say what larger time frame pattern is unfolding. Whether we see a beginning of much anticipated correction or just a blip remains to be seen. The end of month is approaching. So far the average monthly range is not used. We either see a spike in volatility in the upcoming week or it would be a narrow range month.

02/21/2019