Weekly Update: Markets Stage a Massive Rebound
Last week, the markets were in turmoil after the announcement that the Federal Reserve would likely raise interest rates further than the market had previously expected.
That volatility carried into the early part of this week, but the markets actually got some good news this morning when the latest consumer price index (CPI) reading was released.
The October CPI reading was reported at 7.7% year-over-year, which was lower than expected.
Markets reacted very positively, and each of the major indexes gapped much higher at the open.
S&P 500 (ES) futures rose over 5%, while Nasdaq 100 (NQ) and Russell 2000 (RTY) futures both jumped over 6%.
Still, the bulls are not out of the woods yet, so be sure to watch your levels closely as we head into next week.
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Now, for all the details on the markets we’re tracking, continue reading our latest analysis below…
Nasdaq 100 Index: Looking for Selling Ideas
The Nasdaq 100 (NQ) one hour time frame is in an up channel. The market is making higher highs and higher lows.
With the larger time frame showing the market is expected to push bearish, it will be a good idea to wait for the market to enter into the sell zone before looking for selling ideas.
Entry: Counter trend line break bearish in the sell zone.
Stop: In the buy zone above the entry.
Limit: 9,595.25
Once or if the market gives the one hour entry, it will be a good idea to turn to the five minute time frame and to look for short ideas towards the one hour price target.
For our full NQ multi-time frame analysis, click here.
Russell 2000: Looking for Buying Ideas
The Russell 2000 (RTY) one hour time frame is in an up channel. The market is near the top of the channel.
It will be a good idea to wait for the market to form a low price at a known level of U-turn near the bottom of the channel or above the top of the channel before looking for long ideas.
Entry: Counter trend line break bullish near the bottom of the channel or above the top of the channel.
Stop: In the sell zone below the entry.
Limit: If entry is near the bottom of the channel, the limit will be just below the top of the channel. If the entry is above the channel, the limit is 1,905.00.
Once or if the market gives the entry, it will be a good idea to turn to the five minute time frame and look for long ideas towards the one hour price target.
For our full RTY multi-time frame analysis, click here.
S&P 500: Looking for Selling Ideas
The S&P 500 (ES) one hour time frame is in a short term up channel.
The larger time frame shows the sellers can bring the market down breaking the short term one hour time frame up channel.
It will be a good idea to wait for the one hour time frame to enter into the sell zone, below the up channel, before looking for selling ideas.
Entry: Counter trend line break bearish below the up channel.
Stop: In the buy zone above the entry.
Limit: 3,199.00
Once or if the market gives the one hour entry, and as long as the market stays in the sell zone below the up channel, it will be a good idea to turn to the five minute time frame and look for short ideas towards the one hour price target.
For our full ES multi-time frame analysis, click here.
BTC Futures: Out of the Market
The BTC futures (BTC) daily time frame is in a down trend, making lower lows and lower highs.
There is a down Fibonacci extension below the market at 11,060.00.
For now, we are out of this market, waiting for the market to hit the down Fibonacci extension.
Then, we will look for the bullish reversal towards the monthly Fibonacci extension.
For our full BTC multi-time frame analysis, click here.
Crude Oil Futures: Looking for Long Ideas
The crude oil (CL) one hour time frame is in up channel. It will be a good idea to look for long ideas near the bottom of bullish channel.
Entry: Counter trend line break bullish near the bottom of the channel.
Stop: In the sell zone, below the entry.
Limit: 90.67
As long as the market stays above the bottom of the channel, it will be a good idea to turn to the five minute time frame and to look for long ideas towards the one hour price target.
For our full CL multi-time frame analysis, click here.
The Full Rundown
With Tropical Storm Nicole passing through Central Florida, we decided to cancel today’s live session to avoid any last-minute connectivity issues.
However, our live sessions will resume as scheduled next week, with the next session on Thursday, Nov. 17.
I hope you’ll join us then!
Keep on trading,
Josh Martinez
Editor, War Room
P.S. Did you see everything my colleague and expert trader Anthony Speciale revealed in his “Apex Fortunes Summit”?