NQ's VIX (VXN) Getting Ready for a Move
This is the VXN at the 4 hour.
It seems that the NQ is getting ready for a move. I am not expecting the first support to hold for very long. However, if the VXN bounces off the second or third support, then the NQ may be getting the pullback that's been long overdue. Hence, I said pullback and not collapse.
The VXN provides clues of when it's safe to enter longs in the NQ and when to exit. When the VXN reached a support to bounce off of a week and a half ago, that's when the NQ pulled back.
This is why I study the volatility indices. It helps maximize my longs in the NQ, RTY, and ES. Finding a resistance on the indices may be hard. Finding a support at the volatility indices may be easier to find. This helps correlate a resistance on their equity counterparts.
It seems that the NQ is getting ready for a move. I am not expecting the first support to hold for very long. However, if the VXN bounces off the second or third support, then the NQ may be getting the pullback that's been long overdue. Hence, I said pullback and not collapse.
The VXN provides clues of when it's safe to enter longs in the NQ and when to exit. When the VXN reached a support to bounce off of a week and a half ago, that's when the NQ pulled back.
This is why I study the volatility indices. It helps maximize my longs in the NQ, RTY, and ES. Finding a resistance on the indices may be hard. Finding a support at the volatility indices may be easier to find. This helps correlate a resistance on their equity counterparts.