May 11 | What's happening with the NQ futures market?

Click here to view this email in your browser.  To read today's edition of Josh's Daily Direction on our website with updated charts and graphics, Click Here. A tremendous amount of movement is happening within the Nasdaq futures market (NQ). Right now, it appears that the ongoing problems with the Colonial pipeline could be impacting the market. Transportation and oil companies are getting hit hard right now due to the pipeline shutting down, and that's causing prices to plummet. Based on our analysis, the long-term direction for the NQ is still up, but the short-term is down as this sell-off continues. The price in the one-hour timeline is in the sell zone and continues to drop. The price rebounding, if the pipeline shutdown indeed caused the sell-off, is dependent on the pipeline becoming operational again. This is one of those situations where extraordinary circumstances are having an impact on market prices. And it's this kind of scenario where following our timeframe analysis is extremely important. Remember that our daily timeframe helps us find the high and low price of a market, while the one-hour allows us to establish our buy-in strategy. When we have a sudden shift in the market's movement, our timeframe charts allow us to see it with more clarity.  Now, let's look at our timeframe charts to see what's happening with the NQ: Daily Timeframe Analysis The daily timeframe is showing us that the NQ price has broken the outer trend line and is headed for the inner trend line. If you pair that information with our Fibonacci, that means the price is dropping toward 12958.50. DAILY TIMEFRAME The direction within the daily timeframe is currently down. 1-HR TIMEFRAME The current direction for the one-hour timeframe is down THE BOTTOM LINE     While the long-term direction is up, we're waiting for the short-term sell-off to U-turn   Though there's a sell-off happening, the overall direction for the daily timeframe is still up. The price is headed toward support (lower grey line) and will likely U-turn toward a new rally (long green arrow). I expect the market to fall toward support (the lower grey line) and then U-turn toward a new bullish rally. If that support holds, the overall direction will remain up. Remember that this drop is most likely caused by a random disruption in the market (the pipeline shutdown), so we shouldn't expect this sell-off to continue for too long once everything goes back to normal. Now let's look at the one-hour timeframe analysis... One-Hour Timeframe Analysis As we mentioned before, there's a lot of downward movement within the NQ one-hour timeframe. We're in the middle of a big sell-off, most likely due to the current issues with the Colonial pipeline. The price is well into the sell zone, as you can see in the chart below. Transportation and energy companies are getting hit hard by the pipeline shutdown, which is disrupting a lot of businesses. That has investors nervous, causing them to spark a sell-off.   We can see the price dropping significantly in the NQ one-hour timeframe. It's pushed passed support (bottom grey line) and continues to go lower. We'll have to wait for the drop to hit a new level of support and U-turn. While this sell-off looks intimidating, it should be temporary. We have to wait for the pipeline problems to resolve and the impacted sectors to recover. Then the price should rebound and get back into the buy zone! The Bottom Line While this sell-off looks intimidating, it should be temporary. We have to wait for the pipeline problems to resolve and the impacted sectors to recover. Then the price should rebound and get back into the buy zone!     We're waiting for the NQ to rebound and get back into the buy zone The NQ is currently experiencing a sell-off thanks to forces beyond our control. This is just one of the situations where you have to wait for things to get back to normal so we can get back into trading the market. Unless something prevents the Colonial pipeline from opening up, we should see the NQ rebound and get right back into a positive bullish rally. To learn more about how I come up with my analysis, check out this information on my strategy here! Keep On Trading,   Mindset Advantage: Balance When it comes to your mindset for trading, you'll find that your ability to cope with the markets, bad trades, good trades - whatever - has more to do with how you spend your time outside of trading. More specifically, how much balance you have.  In fact, of your total state of readiness 10% may have to do with charts and price levels. The other 90% has to do with how rested you are. How focused you are. How happy you are. Find a balance that works for you and begin the path towards happy trading. Traders Training Session Everything You Need To Know About Market Candlesticks Stay tuned for my next edition of Josh's Daily Direction.   And if you know someone who'd love to make this a part of their morning routine, send them over to https://joshsdailydirection.com/ to get signed up!       Keep On Trading,      There is a very high degree of risk involved in trading. 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