NQ has clearly broken above double-top (2332.50) on Friday, but S&P has not. A clear and sustained break above double-top on the S&P 500 should trigger massive short-covering rally as the stop-loss gets hit. However, failure to break S&P 500 double-top can cause a sharp pullback down.
Key Line in-the-Sand for NQ on Monday is 2355
- Above 2355 implies the uptrend is going to continue, with the next upside target 2380, but if S&P can clearly breaks above its double-top, NQ should rocket past 2380.
- Below 2355 implies NQ is in a pullback mode. First target down below 2355 is 2325, then 2315.
