FuturesBlog.com – Emini and Futures Market Analysis by Chuck Kowalski

Nasdaq Caught In Channel

Posted on February 9, 2010 by Chuck Kowalski

The emini Nasdaq worked its way into a channel today and only time will tell if it will continue moving higher in the cannel or break down out of it.

There was a tough call around 12:30 today when the Nasdaq broke above a major trendline, but it also hit the top of a channel.  The trendline breakout failed and the top of the channel turned out to be a good place to short the market. 

There should be some good setups later this week just from this pattern.  The market could rollover and test the lows if it fails to regain the breakout above the trendline.  A breakdown below the bottom channel line would be a good short.  You have to be careful with these fakeouts though.  I would also look to short the market if it can hit the top of the channel or poke above it.