Today, we got another red day, supporting the pullback thesis.
After hours, we got confirmation that the debt ceiling bill officially passed through the House.
Additionally, $AI had their earnings report after hours, with a slight beat of -$0.13 vs -$0.18, but that wasn’t enough to stop the nice post-earnings dump.
Futures Analysis
/NQ
On the futures, we are still holding true to the current wedge with another red day.
On the Daily, we see that it broke down through the key prior week’s close’s point of control. Although the wedge has more room for downside, it likely won’t be as dramatic as the extreme Friday pump. The more likely scenario is a battle tomorrow between the 14328 POC level and the lower demand zone that we touched today, with a bias towards the latter.
On the 15-minute, we see more price action from today, with most of the day fought around the POC zone. From Fibonnaci levels, this is an oscillation between the 23% and 38% lines. With the bearish momentum and current postmarket red futures, 14328 and 14274 are key lines for the overnight fight that could spill into the morning. If we get a break through the 14274 level, it becomes a fall into the 14225 zone, which should be the low target of the day, with a high in the 14350 area.
Index Analysis
QQQ
On the Daily, it appears to have a similar different story for QQQ.
348 and 337 are still the key levels, with an old resistance-turned-support around 344 close being an EOW goal.
On the 30, we have a nice falling triangle with a very bottom price target of the day at 345.