Pre Market Review · Topdowntraders Mentorship

Pre Market Review

Good morning, everyone.

I'm taking a look at the NASDAQ this morning, along with several of the major stocks that influence the index. Starting with the 15-minute chart, we're seeing a strong bullish bounce, and I'm identifying a liquidity void that could become today's target.

Since today is Tuesday, I'm leaning bullish and have two possible trade scenarios.

Plan A: Continue higher and target the liquidity void.

Plan B: Pull back first, retest the sell-side liquidity, and then continue higher.

At the open, I'll simply monitor price action and let the market confirm which scenario develops. The current trend is strong, and the recent momentum suggests buyers are still in control.

Looking at the higher time frame, we rallied after taking liquidity around relatively equal highs. I wasn't watching that earlier move, but there is still another set of relatively equal highs above us that could become a target. My primary focus, however, is the large liquidity void created by the opening gap from several sessions ago. I'll extend that zone and continue using it as my primary upside objective.

Overall, I remain bullish, not only for today but potentially for the remainder of the week. There are several areas of buy-side liquidity that still need to be addressed, along with relatively equal highs that could attract price higher.

Now let's compare that with the NASDAQ futures.

I'm bullish on the NASDAQ as well. If momentum continues, I believe there's a good chance we challenge the previous highs. I'll keep my stop loss tight and continue managing risk throughout the session.

As many of you know, I specialize in trading the NASDAQ E-mini Futures, but I also like to monitor several of the larger NASDAQ stocks because they often provide clues about the direction of the overall market.

Let's take a look at Tesla.

Tesla is showing positive momentum this morning, which is another bullish sign for the NASDAQ heading into the opening bell.

Now let's check NVIDIA.

NVIDIA also looks constructive. We still have relatively equal highs above current price, along with a liquidity void that could attract price higher. That liquidity void is my preferred target, and if NVIDIA continues moving higher, it should provide additional strength for the NASDAQ.

Next, I'll move over to the 5-minute chart and prepare my trade.

This is a demo account that I use strictly for educational purposes while teaching. My buy stop order will be placed just below this area, and I'll use the 45-minute chart to define my overall target and manage the trade.

My objective is a move into the relatively equal highs while protecting capital with a disciplined stop loss. As price moves in my favor, I'll reduce risk and take partial profits along the way.

Looking left on the chart, we can clearly identify both equal highs and equal lows, giving us logical liquidity targets. If the market reaches those areas, I'll continue managing the position based on price action.

This is my trade setup for the NASDAQ E-mini Futures this morning using the 45-minute time frame. Right now I'm viewing the electronic trading session, but once the regular session opens, I'll switch back to regular trading hours.

There may be a short-term pullback before the market moves higher, and that's perfectly acceptable. This is a limit-order setup, so if price doesn't reach my entry today, I'll simply wait for the next opportunity.

There's still a significant liquidity void created during the overnight electronic session, and I'd like to see that gap begin filling over the next several trading sessions. That remains my primary target for the week.

Historically, Tuesday tends to produce good trading opportunities. By Thursday, I'll be watching for signs of a possible reversal, depending on how price develops.

Throughout the session, my focus will be on protecting capital, reducing risk, managing the trade professionally, and taking profits at logical levels.

That's my outlook for today's NASDAQ market.

I hope you found this analysis helpful. Thanks for watching.

This is Kevin Garrett with TopDownTraders. Have a great trading day, and I'll see you in the next market update.

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Pre Market Review