Hello, everyone. Over the past Wednesday, Thursday, and Friday, the market experienced a sharp correction.
On Friday near the market close, I bought 1 contract of Nasdaq Micro (MNQ) in my Charles Schwab account and held it overnight. As soon as the market opened today, I cleanly closed the position during the gap-up section, finishing with a profit of about $680.
Right now, it’s a tricky spot—too ambiguous to aggressively go long, yet risky to jump into short positions. For today, I plan to catch my breath, watch the market closely, and wait for a clear pullback timing to look for buy entries again. (Since I’m based on the West Coast, the timestamps reflect Pacific Time…)
📊 Nasdaq (QQQ) Market Outlook & Scenarios for This Week
This Wednesday, a major market-moving event is coming up: the FOMC. To prepare for this, I have laid out three core scenarios to guide my execution:
- Technical Rebound from the Drop (Most Likely Scenario)
- A reaction rally Monday through Tuesday following the Wed-Thu-Fri plunge, with direction determined after Wednesday’s FOMC.
- This is also why I held my long position overnight on Friday.
- Further Drop Followed by an FOMC Rebound
- The downward momentum from last week extends through Monday and Tuesday, turning bullish starting from Wednesday’s FOMC pivot.
- Monday–Tuesday Consolidation Leading to FOMC Direction
- Trading sideways in a narrow range until Wednesday’s FOMC results trigger a definitive trend breakout.
🎯 Key Support & Resistance Levels
If the rebound momentum continues into early this week, here are the key resistance levels to watch:
- Upper Resistance: 695 / 705 (Strong resistance expected)
- Lower Support: Friday’s low point
Given that Wednesday’s FOMC is a major catalyst, strict risk management is essential. Stay flexible and adapt to the market’s movements.
Wishing everyone successful trading and great profits this week!
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