A very bearish day on Friday with the close near the day low. The pattern was a clear 1-2-3 wave down from the high to the day low, on the 5-minute chart, for both ES and NQ, a clearer and cleaner 1-2-3 down for NQ.
-- If the 2nd downleg has ended, we should then get a 1-2-3 rally in the morning on Monday. If so, the first resistance is at 3660. A clear break above 3660 implies a move up to the next resistance at 3680
--ES resistance is 1866
-- If, however, the 2nd downleg is still in progress, then the market should continue to drop to lower price level in the morning on Monday, next support are 3620 and 3600.
--For ES key support is 1856. A break could take ES down to the next support level, 1846
Whether or not we should get a rally up will entirely depend on how bearish the market gets.
-- Not expecting a big rally if internals gets too bearish, and
-- Looking for a rally if market internals are not in extreme bear camp.
Crisis in Ukraine should continue to influence the market on Monday
