After running through 3050 in July, Nasdaq continued its run into August printing early highs of 3150 before falling back to 3050. This led to a failed breakdown as the market found support at it's old resistance and turned the month of August into a consolidation month with a range of 3050-3150. To start September, the pressure was put against the tops at 3150 which eventually gave, seeing the Nasdaq future trade up to 3213 today. The gap open higher was above its rising wedge which led sellers to come into take profits and bring the futures back down to fill the gap from last friday. This rising wedge should be taken with caution as the market presses the tops and the wedge tightens. Going forward, 3150-3050 is new range for Nasdaq to hold to continue the upward momentum. To continue this range expansion of 3150-3050, this gives room up to 3250. Line in the sand comes at the August lows just below 3050 as a break below this shows the market failed to hold the consolidaiton range and turns the breakout above 3150 as a failure. Major downside support seen within 2920-2870 with stops below the June 281775 low as a breach of this low sees a break of the 200day and a shift in trend momentum. Based off Monday's 3213 high, 3196 is a new level of resistance off these highs.
RISK DISCLOSURE: PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING FUTURES AND OPTIONS IS SUBSTANTIAL AND SUCH INVESTING IS NOT SUITABLE FOR ALL INVESTORS. AN INVESTOR COULD LOSE MORE THAN THE INITIAL INVESTMENT.
