As I mentioned in my ES/SPY post we have a good chance for a continued rally into the FOMC meeting this week. NAS is poised to at least tap the ATH and potentially breakout.
On breakout the first resistance and target would be the red box. In the past the NAS has had some good follow through momentum on breakouts so watch for some short squeeze price action. The market has been heavy long the DOW type names and short the NAS tech names. On a breakout money may shift quickly from the inflation trade back to growth.
Watching the reaction to the Fed minutes and rate decision comments will be key. I will trim current positions into the Fed meeting and hold off on new positions until after the meeting.
Watch for updates to my charts as things can change quickly.
On breakout the first resistance and target would be the red box. In the past the NAS has had some good follow through momentum on breakouts so watch for some short squeeze price action. The market has been heavy long the DOW type names and short the NAS tech names. On a breakout money may shift quickly from the inflation trade back to growth.
Watching the reaction to the Fed minutes and rate decision comments will be key. I will trim current positions into the Fed meeting and hold off on new positions until after the meeting.
Watch for updates to my charts as things can change quickly.
