On Friday Nasdaq opened with a gap-down and tank for 15 minutes down to support and .618 retracement of the uptrend that started on Tuesday morning.
A bounce from support turned impulsive-up (reversal up) in the morning, implying that the gap-down was in fact more likely wave C and not wave 3, and the morning rally was either wave 1 or A of a new uptrend. Note that Wave C opening gap tends to produce an opening gap-reversal.
If so, Friday afternoon sideways action was wave B and on Monday we should wave 3 up, and may be a gap-open. Wave 3 gap would be a trending gap, but always on a look out for wave C gap-reversal.
Key price level for trend directional bias on Monday is 2750 (Resistance/Support level.
Chart below showing a likely path for Monday if price action is above 2750 price level.
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With price action below 2750 on Monday then the above analysis is invalid. The chart below outlines another potential path for Nasdaq NQ on Monday.
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