I have moved to the weekly charts for the three major indices, names the YM, ES & NQ to highlight the major divergence between the NQ (Emini future for the Nasdaq) and the YM (Emini future for the Dow) & ES (Emini future for the S&P500) and as we can see from the three charts only the NQ is the most positive as it is managing to hold above the volume point of control, thereby helping it retain a bullish tone.
Moving to the slower charts allows us to smooth out the intraday volatility, gain a clearer perspective on key support and resistance levels and perhaps determine the short term bias for the indices. And as always volume is key.
14140 is the key upside level which, as we can see, coincides with the S3 Camarilla pivot. Third level pivots are the most important as price will almost always stall at these points and often reverse. On the downside, we have two reasonably strong support levels between 13200 and 13400 before the volume point of control once again comes into play.
A very different picture on the ES with the index not only below the volume point of control but also trading at the S3 Camarilla pivot which is adding its own downwards pressure. This vpoc (volume point of control) divergence from the NQ is unusual as these two indices do tend to correlate quite strongly. And whilst I accept they have similar candle and volume configurations we cannot ignore the very different support & resistance picture.
Finally to the YM which can often be the outlier but on this occasion has more in common with the ES with the price action also below the volume point of control and also stalled at the 3rd Camarilla pivot.
By Anna Coulling
All the indicators are my own and available from Quantumtrading – Charts courtesy of Ninjatrader
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