The beginning of the annual bearish period, May to October, is almost upon us, the month of May is fast approaching, the market always sell-off during the months of May to October. As we approaches the bearish period, rally often get sold off fast, just like the price actions on Thursday morning, as the funds download their position on unsuspecting investors.
These type of price actions should continue, the so called "pump and dump" with funds selling-off their position on any rally, but they will make sure that no technical damage is inflicted on the charts. Once most of the insiders are mostly out of their longs, the summer sell-off should begin, and usually at a slow pace to start with.
With the Dow and the S&P 500 just below the previous swing high, the insiders should continue to push the market up, and would love to see a higher high, particularly for the Dow and the S&P 500, so that they can exit their positions at a good price level.
Key price level for NQ on Friday is again 3585.
-- Continue rally above 3585, with strong resistances at3620. If that breaks, the next resistance is 3670
-- Bearish below 3585, support are at 3550, then 3530.
