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The markets are all above key resistance levels now, a bullish condition. Even though the daily charts look bullish, the long-term charts (weekly) are still bearish and overbought. So there is still a good chance of a return to the downward channel on the weekly charts. It is too early to call a top, but keep the short side in mind if you see weakness at Fib levels. Here is a quote from my intra-day chat room: " Weekly chart is not out of bearish zone. Daily is bullish. Intra-day below 30 minutes is bearish, but 30 min is setting up for potential support. Maybe that's too confusing? Pick your time-frame."
So how do you trade this market?
It all depends on the type of trader your are. As you can see from my QQQ updates (below), Fibonacci support/resistance levels are important to your trading. And notice how these levels were determined ahead of time! With these levels in mind, you can adjust your trading accordingly, from 5 minute intraday to swing trading.
QQQ
Sept 21 QQQ is testing resistance at $35.77/$36.00 SK on the daily chart.
Sep 24 The SK resistance of $35.77/$36.00 held, causing a significant and quick retracement. Now we have to watch for support at $34.50. There is an SK level there on the daily chart, which should bring some buyers into the market. Scalpers may consider covering shorts there on signs of support. After that, a bounce could provide great short trades, let's see if we get one.
Sept 29 QQQ is supporting at that $34.50 SK level right now. I would not be surprised to see a counter-trend rally here, up to a FibLevel resistance. Key resistance levels on the way up are at $34.59, $34.85, and $35.25.. The $34.85 level is the stronger of those three. Intra-day bullish scalpers should consider taking profits at those levels. Bears may consider entering at those levels.
Update Oct 5 - QQQ resisted at the $35.25 for a while, regained some energy and punched through to new highs. The recent high was $36.60 and QQQ is in an intra-day retracement towards support right now. There is support at $36.20 today, if that breaks the chart turns bearish in the short-term.
My videos are designed with one purpose in mind--to help you make money trading the market.
"Your last video - Advanced Fibonacci Trading was great. You've really "distilled" the important stuff well. Keeping it simple is important in trading...What can I say - but thanks - I don't know if you can make it any better - the system just "works" " D.M.
For more information on my video seminars, check the link below.
http://www.fibmarkets.com/videoseminar/
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Good trading to you.
Neal, Fibmaster, at Fibmarkets.com
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