Game Plan For the E-Mini NASDAQ 100

The E-Mini NASDAQ 100 got an impressive breakout in Thursday's market, and broke free from the downtrending channel. Yesterday's breakout could mean more strength Friday.

Higher Value Setup

The 5-minute chart shows the NQ has developed a Higher Value relationship after yesterday's rally. As you know, the HV relationship develops when the upcoming day's Value Area is projected to be completely higher than the preceding day's VA.

Essentially, this means buyers were successfully able to establish higher value, which is quite bullish considering value had been diminishing during the downtrending channel.

Look for the market to retest the newly minted value area during the early part of Friday's market. If responsive buyers are able to defend the value area between 2,673.50 and 2,683.25, then look to buy the pull-back ahead of the likely upswing.

The Game Plan

If the market opens the session above today's projected Value Area High at 2,683.25, then I will be looking to buy anywhere within the value area between 2,673.50 and 2,683.25. I'll be watching 2,713.25 as the main target, and 2,724 as the flyer.

If the market opens within the value area, I'll be more cautious with the entry, and will look to buy as low as 2,673.25, with the same bull targets.

If the NQ opens with a gap down below 2,670, I'll look to establish a Short position between 2,673.25 and 2,678.50, as this scenario will indicate that market sentiment has completely changed. The bear targets are 2,656.50, 2,645.75, and 2,638.75.

Keep in mind, while today's main Game Plan is to buy the NQ, this is only a one-day trade. The NQ remains within a very sharp downtrend, which began in mid-September, and the current advance could merely be a rip within the current decline. Either way, there's still more short-term upside above 2,700.

Let's see how this plays out!

Cheers!

Frank Ochoa
PivotBoss | Own the Market

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