We are anticipating price action in the Nasdaq futures as short-term traders. A "normal" measured move of 738.5 points from today's (12/26/2023) low would put the Nasdaq at all-time highs based on the futures back adjusted contract.
Since there are only four trading days left in 2023, can the market move this far in four trading days? It's a pretty big move in a short period of time.
Based on recent price action, this type of move has been "normal" as we have seen 3 moves like this since October 31.
The three biggest high to low moves since October 31, 2023 have been:
917.25 points = 10/31/2023 - 11/03/2023 (Monday through Thursday - 4 trading days)
842.25 points = 11/10/2023 - 11/15/2023 (Friday through Wednesday - 4 trading days)
707.75 points = 12/08/2023 - 12/13/2023 (Friday through Wednesday - 4 trading day)
We are not predicting this move will happen for sure nor are we market bulls. We are short term traders looking at some potential trend opportunities.
Some of the recent moves include FOMC days and overnight moves with a gap up.
Markets have the tendency to cycle between 1.) going against day trade strategies (overnight moves with choppy day trade sessions and constant stop running price action) and 2) in favor of day trade strategies with a consistent trend intra-day.
Lately we have seen more of 1 than 2.
The move to all-time highs is certainly possible. The path it could takes to get there is uncertain.
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