The E-Mini Nasdaq 100 [NQH14:CME] reaches 3700, but sells off back to the 3685 pivot. Watch this pivot for the next swing move.
NQ Reaches 3700
In my February 17th edition of the Opening Print (Nasdaq 100 Nears 3700, with 3941.50 on Tap) I wrote: “Will the NQ see 3700 in February? Well, let’s put it this way, the NQ has nearly two full weeks to push just 28 points past the current high of 3672 to reach 3700. Add to this the fact that the NQ is averaging 52.25 points per day on a 10-day average range basis, and we could see 3700 by lunchtime Tuesday.”
Okay, so it took the NQ a little longer to reach 3700 than by lunchtime last Tuesday, but the point is the NQ finally hit 3700. In doing so, the NQ also completed the final target from my original call to buy 3420, with scales at 3377.50, 3610, and 3700.
While this completed this trade idea, I still think more upside is ahead. In last week’s column I mentioned a new upside target at 3941.50 for the NQ, to be reached sometime in May or June. So while we may see some near-term weakness ahead, I believe we are headed higher overall.
3685 is the Pivot to Watch
Keep an eye on 3685, which has become a key pivot in recent trading. The NQ finally pushed through this important resistance level during Monday’s session, but price levels above it were rejected, sparking a sell-off into the close.
Clearly, the short term battle is for control over 3685. This level is an LVN and if the bulls step in to defend it, as it is the first retest after the breakout through it, we could see another push higher into the primary weekly bull target at 3719.75.
Failure to hold above 3686 suggests weakness back toward key level and LVN support between 3655 and 3660. Any pullback into the 3655 to 3660 zone offers a buying opportunity on a swing basis, again with upside targets set to the primary weekly bull target above.