The market is in overbought territory. The NQ has been up in almost a straight line from the 7276 low March 27 low to a high of 7633.75. The NDX is overbought riding the top of the band on the daily with an overbought reading on the RSI. The ES has move from 2791.75 to a high of 2900 in the same time frame. So to see selling and back n fort action is expected.
The morning plan was to look for support for a long trade into the AM weakness. The keys were FANG and the banks. FANG types lead right off the bat. AAPL, FB, and then AMZN and NFLX. The NQ got oversold using the bollinger bands on both the 60 and 120 minute. We had a price of 7587- 91 buy zone with a low of 7584.5 which took the NQ to 7618 area for a nice trade. The banks and XLF were the other tells. The banks have not acted well. GS trying to hold onto the 200 level. However, so far it has held the 26.27 area of support I mentioned in the morning note – bottoming so far at 26.29.
The afternoon session looks like sellers might take control. I dont see a set up as of now.
BalsamTrades 