Stuck in the Middle

I can take this metaphor two different directions--on the one hand, maybe the markets feel like we're just stuck in a roundabout, just going around and around re-visiting the same place 50 feet away and then returning only to inevitably go back. Alternatively, maybe it's like the markets are out driving on a racetrack--going fast, making moves, and you feel like you're going somewhere... but ultimately you're in the same spot.

If you look at the NQ chart over the past ten days, we've been stuck in this range. We get down to 14600, we bounce back up to maybe just over 15000, and then back down we go. We haven't gone anywhere new. Now if we zoom out, we also bounced off of 14600 in August. Keep zooming out, you'll see that since June we still haven't gone anywhere. For the past almost four months, we've been stuck in the mud. Is it long-term consolidation? Long-term distribution? That will partly depend on what your thesis is for the markets over the next year or two. Will there be a catalyst to finally push us out of this range, or are we just going to rattle around here until everyone just gives up?

It's especially great when, like yesterday, we just capture the whole range in a day. Overnight we tried to dip below 14600, the buyers stepped in, and we spent all day grinding back up towards 15000 (even if we ultimately fell short at 14956. Let's be dramatic and do something cool like just go all the way back down again. Why not? At this point the only guarantees are 14600 is support, and 15050 is resistance. Trade smart and trade safe!

Here are the NQ levels for today:

Current Price: 14880

Upside Targets: 14906, 14955, 14996, 15046

Downside Targets: 14865, 14818, 14782, 14740

Stretch Targets: 15074, 14680