Nasdaq Futures Respect 21600

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As we talked about yesterday, we wanted to see how the March Nasdaq futures handled the systematic sellers waiting near 21600, well we got our answer as the market traded close to there hitting a high of 21567 and backing down closing below 21250:

What is interesting is that from a technical standpoint the Nasdaq looks like its following a downward sloping channel now since Mid December. We like these parameters and they offer a very good trading range, that is until it is broken. So when we talk about a market being in a good technical trade, look at this Nasdaq chart and you will see what we are talking about, as the range has been coming with consistent lower and lower highs, highly indicative of a systematic sell program. You guys know our level is 21600 and if we stay down below there, our guess is that level will come down a bit and add even more pressure in the future, but let’s see how tomorrows trade filters out.

Let’s take a look at today’s settles as the US Bond market had another decent day as the 2Y is back to unchanged on the year, the Nasdaq was the contract value loser on the day with Gold the winner: