This morning I posted a chart and a few comments regarding the structural position of the Naz / ENQ. The ENQ rallied briefly early, then spent the majority of the day session building minor Balance in the area of the large degree HVN (High Volume Node). The larger degree Balance Area that began January 2 is an increasingly mature structure and this is a market that is closer and closer to what is likely to be an extremely sharp move. I thought that move was beginning this morning but while the Naz would not join the other indices as they pushed to their recent highs late in the day, it could not break its earlier lows, either. So, basically, we have a “re-set”. I am short with tight stops, but if the Naz takes out 2757 the probabilities favor an upside breakout that should be very sharp, and I will try and enter in that direction. The key level is 2740 – 2728 (the HVN of the larger degree structure) ; you do not want to be caught on the wrong side of that level for long!
To make it confusing as possible the Dow /YM and S&P 500 / ES closed near their highs for the day (the TF closed at its highs for the day) and look like they are on the verge of resuming the immediate bull trend. While the direction is cloudy, tomorrow is likely to be the host of a wide range, directional day of 1 1/2% or more.
