Day Pivot: Set Up

To date, the market has put in a 'culmination' bottom Aug 9th very early in the morning and since then the market has not returned to those low levels; for the NQ we have a short term low of 2072 and for ES, the low is at 1077 level. These were the culminating low points established by the previous down swing that began uninterrupted July 27th. On Aug 9th, stocks put in a 'neutral' day - meaning they did not return to the overnight low levels mentioned above and they closed within the 3 day pivot range of the hourly chart. As of Aug 11th, stock indexes (US) make a transition day, by breaking above the 3 Day Rolling Pivot range and closing for the day back into the weekly channel structure to negate a continuation of the intermediate down trend established at the end of July. Importantly, the stocks have not sunk to retest their overnight lows of Aug 9th mentioned above, supporting the idea that there is a tradeable bottom in place.



The charts below show the NQ, ES futures as of this morning with updated 3 Day Pivot ranges denoting 'key' support for the emerging short term uptrend that was signalled effectively as of late last week.
We need to see continued movement of stocks above the Pivot Range overlays shown below to ensure continuation of the 'trend' and buy signal. Any failure to do so, or closing violation below the 3 day pivot would imply a short position be taken.

For ES any closing violation of 1150 is a short signal. Supportive to the up trend is a close above 1167.
For NQ, we need to see the market close above 2162. The short signal comes on a close below 2129, which coincides with the weekly lower boundary at 2128 implying that there is good support in this market.