| | | | There’s a 77% Chance the Nasdaq Will Fill the Gap, and China Buying Gold?
First, as always, I’ll be live at 9:15 a.m. ET for “Morning Monster”!
There are secret buyers who are loading up on large quantities of gold. After the 5 trillion yuan stimulus announced last week, the gold speculation in China has exploded! Will this be enough to push gold to the next big level of $3,000 an ounce, or beyond?
Come join me as we dive in and see what is moving!
Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.
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Why the Nasdaq Is Likely to Fill the Gap Higher
Now, as we begin the fourth quarter of 2024, the market is showing a key technical setup that could signal a significant rally in the Nasdaq. While the S&P 500 faces tough resistance, the Nasdaq presents a potential breakout, fueled by a gap that was left behind during recent price movements.
Historically, gaps like the one we’re seeing now tend to get filled, and in this case, the probability points toward further upside. According to historical data, the Nasdaq has a 76.92% win rate of reaching its target after triggering this setup.
With the Nasdaq currently sitting just above resistance, there’s a 5.8% potential rally ahead, and given that we’re still in a bullish market environment, the odds favor a continued push higher.
This pattern has played out 39 times since 2010, making it statistically significant. The target sits about 5.5% higher from current levels, providing traders with a clear potential path to profit.
Leveraged Plays Could Amplify Gains
For traders using leveraged ETFs like TQQQ, this moment is particularly intriguing...
TQQQ’s setup shows a 94% historical win rate, with a profit factor that signals strong potential gains if the Nasdaq continues to rally. However, leverage is a double-edged sword — while it can amplify profits, it also increases risk, so caution is always warranted when using these products.
S&P 500 Faces Resistance
On the other hand, the S&P 500 has already hit its calculated target, but the index hasn’t broken out decisively above its resistance level. This could lead to a period of consolidation or even a minor pullback. If that happens, we might see a divergence between the Nasdaq and S&P 500, a situation traders should monitor closely for signs of a broader market shift.
The market is at a critical juncture, with the Nasdaq showing clear potential for a rally while the S&P 500 struggles at resistance. The next few days will be key in determining whether the Nasdaq can fill that gap and push higher. For traders, particularly those using leveraged instruments, this could present a prime opportunity—but as always, manage risk carefully and stay alert for any market reversals.
Now for your Daily Chart Setup!
Today’s Daily Chart Setup: Logitech International (LOGI)
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