Below is a past issue of Morpheus Market Minutes, your free daily market analysis and top picks for swing trading stocks and crypto.
May 17, 2022
Day 3 of a new rally attempt in the stock market produced an inside day on lighter volume, right at resistance of the 8-day ema in the Nasdaq 100 ETF ($QQQ):
If $QQQ moves above the two-day high, it could lead to a test of next resistance at the declining 20-day EMA.
On the chart above, notice how the 20-day EMA has perfectly acted as resistance on previous bounces within the current downtrend.
Although stocks are in short-term bounce mode, the Nasdaq 100 remains firmly in a downtrend UNLESS the index convincingly reclaims support of its 20-day EMA on higher volume.
Regardless, we trade what we see–not what we think!
As such, we are now stalking $SQQQ (Nasdaq 100 short ETF) for a low-risk entry point on a bounce into strength.
We will send Wagner Daily members an alert with our exact entry and stop prices if we see an ideal entry point today.
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