Quote from tradersaavy:
NQ, hmmm, holding above the gap.
TS,
Nice catch on the gap!
The only mini that I have a lot of previous data for is NQ, so thats the one I've checked.
Going back to the 12/03 contract, I can see that the 1445-55 level was very important.
NQ tested and failed repeatedly from 10/30 thru 11/04, when it finely droped below its short term range,to make a higher lo on its longer term trend.
NQ climbed back up to the 45 or so area, and hung out there for another few days,12/1-12/3 only to fall off, make another higher lo
and try again.
(Moving on to the 004/03 contract)
Then we get two more test of that area on 12/14 and again from 12/23 thru 12/26.
finely on 12/29 nq breaks above 50 and holds.
So at this point we know that nq worked it's butt off to get above the 50 level and likely don't want to give up all it's hard work.
Which means that 50 is now support,
NQ tried to test Support twice, and found about 60 to be the best price.
Thats when enough buyers were convinced that strong R was now strong S.
Thats where the gap came in, and being tested now.
So the question might be, will we hold a higher low? or break the back of S?
