Friday, September 2nd, 2022 started from fresh buy “Buy PB” signals in ES-mini and NQ-mini:

Both, ES-mini and NQ-mini consolidated over the blue Daily support (the upper blue line) levels overnight and built a base for another push higher:

NQ-mini futures, 30 min chart, 2 Sep 2022

Today was a good case study that confirms the validity of that rule:

At 9-19 AM EST I posted a note for subscribers in the chat room:

“Note how ES built a base along the Daily Support, the blue line at 3,954.75. Failure of bears to break under the Daily support in the morning triggers a rally targeting a daily resistance.“

Note how the first morning push up found resistance at the red MTF Trend Line:

That MTF Trend Line is calculated on a higher timeframe and its color tells you what the prevalent trend is.

NQ-mini printed a cycle resistance and ES-mini hit the Daily resistance levels at 10-49 AM EST:

The Cycle Trader indicator suggested closing a long position in ES-mini at 4,022.25:

At 11-33 AM EST I warned subscribers that both, ES-mini and NQ-mini hit confluence of resistance levels:

– the red line 21 MTF Trend line, and

– the red Daily Resistance, and

– the fresh cycle resistance on 30 min;

The very same picture we got in NQ-mini:

At 12-25 PM a bot posted a fat string of topping signals in the chatroom:

Those signals were generated by the Multi timeframe version of the Cycle Trader Indicator. Subscribers can set such alerts on any stock or index they like.

This is what happened in the afternoon:

NQ-mini turned down an erased the morning gain. Note that NQ dropped right to the Secondary Daily support level.

The Secondary Support:

The lower Blue Line is a secondary support. In a down trending market bears normally keep price under a Daily Support (upper blue line) all the time. This is why in a down trending market the Daily Support often works as a resistance. The lower blue line, the Secondary Support, quite often manages to stop even strong declines. The great thing is that the Cycle Indicator can calculate those important levels 24 hours before start of a trading day!!!

Note that both, ES-mini and NQ-mini printed a dark red horizontal line, a cycle resistance, at the top of the day, and then printed a dark green line, a cycle support at the low of the day.

The Cycle Trader indicator suggested a profitable scalp right before close of the day:

At 2-51 PM it printed the Strong Short signals for ES-mini and NQ-mini on 3 min charts:

This is how they worked out:

On the NQ-mini chart shown above note that the indicator nailed a bottom for that micro down cycle detected on 3 min chart right at the blue Secondary support level.

I call those “Cover Short” signals “bottoming signals” because they complete so called “bottoming sequence”. You can read more about that bottoming signal in my blog.