The week ahead 8/15 - 8/19

The markets have seemed to settle down (at least for now).  The Sunday night Globex open was pretty quiet. Going into this week the Nasdaq and S&P are both at critical areas.

The Nasdaq 100 futures are currently sitting right on their 150 day smooth moving average (2179.25). They have been able to get back above it but have been unable to hold. I think that which ever way the Nasdaq decides to go from here will set the tone for the week.

The E-mini S&P is still a good distance away from their 150 day smooth moving average (1236.70) but they are faced with a different technical hurdle. On August 8th we had a big gap down at the beginning of a Globex session.  We now have a gap from 1189.00 - 1197.75. The inability to fill in the gap sends a signal of weakness to the market.  If we cannot fill it in then I assume that the Nasdaq will be back below their 150 day moving average and the bears will be feeling good about themselves.  If we do fill in the gap then I assume that the Nasdaq will be trading above its 150 day moving average and the bulls will be looking to take control of this trade.

These are the two major hurdles that I see heading into this week. If the Nasdaq can sustain trade above the 150 day smooth moving average (2179.25) then I think we could see some short covering across the major markets.  This could result in the Globex gap in the S&P (1189.00 - 1197.75)  getting filled in rather quickly.

Have a great week of trading.

E-mini Nasdaq daily chart.

E-mini S&P daily chart.

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