There is a well-established level in the Nasdaq 100 futures (NQ) that traders in-the-know are watching to determine the next directional move in the stock market.
Click here to watch a video explaining how to read markets using volume at price.
Yesterday’s rally was making good upside progress until it touched the well-defined zone of volume-at-price resistance beginning at 4852.75. Upon testing this zone of resistance that runs as high as 4879.50, the NQ futures made an about-face and moved sharply lower into the close.
While NQ futures remain below this zone, there remains potential for further pullback by this index as well as the S&P 500 and Russell 2000.
If NQ futures can overcome this zone of resistance, this would be an initial signal that the stock indices are mounting a move to the upside. If instead NQ futures continue to see selling pressure like we saw yesterday into the close, next lower support remains at 4749 – 4760 where prices briefly touched late last week.
