Nasdaq & ES Analysis (Mon, Oct 21)

Key Levels & Trade Setups You Need to Watch Today

Author

The Daily Trader
October 21, 2024

The daily trader

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Welcome to today’s edition of The Daily Trader! Get ready for another action-packed day in the market as we deliver a top-tier watchlist, expert trade ideas, and a complete market outlook to help you stay sharp. Whether you're a seasoned trader or just getting started, our insights and analysis will keep you informed and ahead of the curve.

FEATURED TRADE IDEAS

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Nasdaq Futures - $NQ

Something I’ve noticed with NQ is that it’s been relatively weak compared to ES. I believe we can see a strong pullback this week, before continuing the trend up to ATH’s.

Technical Analysis

  • NQ is currently forming a rising wedge pattern, which is typically a bearish reversal pattern.

  • We are also rejecting a major Fair Value Gap, which is from $20,410 to $20,725. Multiple rejections show buyers have been relatively weak.

  • Additionally, order flow has been slammed with sell orders, showing big money is betting on a bearish move in the coming days.

  • Look for a break below $20,320 (previous low of day) to take sell positions.

chart analysis

NQ - Daily Chart

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S&P500 Futures - $ES

The overall outlook for $ES has been bullish. Breaking highs after highs makes you wonder: When will we get another pullback? That my friends, could be now. In my opinion, ES is very over-extended, with RSI reading oversold & displaying bearish divergence.

Technical Analysis

  • ES is currently forming a rising wedge pattern, which is typically a bearish reversal pattern.

  • Just like NQ, massive sell orders came through the tape just before close.

  • RSI is displaying bearish divergence on the 1-hour timeframe

  • Look for a break below $5,876 (previous low of day) to take sell positions.

Chart analysis

ES - Daily Chart

FINAL THOUGHTS

Long term, I am bullish on the market without a doubt. However… Technicals are showing we can see a short-term drop. “So what does this mean? Should I take sells now?” No. Use this bias for future trades throughout the week. If you see a nice sell setup, capitalize on it and execute.

Fear and Greed Index
index chart

Data from CNN

THANKS FOR READING

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We hope you enjoyed today’s analysis, packed with all the juicy insights you need to conquer the trading world! Stay tuned for more updates, analysis, and watchlists from The Daily Trader. Remember, the secret sauce to trading success is staying in the loop and making those savvy decisions. Thank you for being an awesome part of our community, and get ready for even more epic content coming your way soon. Until next time, trade on and stay awesome!