NAS 100/NQ! Keep an eye on the 1.13 FibX

We've seen nice bullish price action from the NAS the last two sessions. The NAS is now poised to break out too new highs if the we get some strong earning reports from AAPL, AMZN and the like. I always watch the 1.13 fib extension on break outs as I have found many failed breakouts reject at that level. For that reason I use the 1.13 fib extension as my stop for harmonic patterns above or below the X point. If price can break through the 1.13, however, look for continuation of trend. In this case a break of the 14137 level is likely to be very bullish. I point this out not to be bearish but as a reminder to always be careful in these zones not to jump in before confirmation of a break. This pattern could still easily turn into a double top after sucking in all the impatient longs.

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Dropped sharply this morning then went into chop mode. Likely to stay in chop mode until Powel speaks tomorrow.