Last week's bull trap correction found solid support at 22,800, with buyers launching an explosive Opening Rip that's now forming a powerful V-shaped recovery pattern targeting prior highs.
After MSFT/META earnings euphoria created a bull trap at new highs, NQ has dropped to test critical ascending channel support at 22800. Analysis of bullish vs bearish scenarios for August, plus comparison to the 2000 market top.
July 31st delivered a dramatic reversal in NQ futures as positive MSFT and META earnings reports triggered overnight buying, only to be met with aggressive institutional selling at the market open. The resulting bull trap broke critical support at 23,600, violated yesterday's lows, and breached the diagonal support trendline - inflicting significant technical damage. This comprehensive analysis examines the overnight euphoria, the institutional distribution pattern, key broken levels, and three potential scenarios for early August trading. Learn why this rejection at weekly resistance matters and what levels traders must watch to determine if this was profit-taking or the start of a larger correction.
Powell's unchanged rates announcement triggered a dramatic bear trap in NQ futures, with institutional buying driving a 15-minute explosion to new all-time highs
The Cumulative TICK indicator tracks the running total of buying versus selling pressure throughout the trading day, showing whether bulls or bears are winning the overall battle.
Advanced momentum indicator combining three Awesome Oscillator timeframes to identify wave strength, exhaustion levels, and reversal signals for futures trading.
Advanced ThinkorSwim momentum indicator combining three RSI timeframes to detect persistent trends and avoid choppy markets for NQ, ES, RTY, and YM futures.
Explosive bullish momentum setup occurring in the first 15-30 minutes after market open at 9:30 AM ET, characterized by rapid price expansion with strong volume and breadth confirmation
Early session reversal setup when price direction diverges from advancing-declining issues breadth, signaling institutional distribution or accumulation in the first 15-20 minutes
Long setup when price drops sharply but fails to break recent lows, consolidates with a higher low, then breaks out bullishly