Nasdaq NQ opened with a gap-up, and after a period of choppy pullback it rallied to near prior high on July 16th.
NQ had a clear 5-wave rally from the end of day low on Thursday July 17th, so the rally may need to go into a larger pullback before rallying back up. Whether or not NQ would have to make a higher high above prior July 16th high before pulling back down only time will tell.
Key inflection price level for Monday is 3925.
-- Trading above 3925 is an indication NQ is going to make a higherh-high first before going into a larger pullback down.
-- Trading below 3925 implies a larger pullback is in progress, with key support at 3910-3915. If support hold, look for NQ to rally back up again.
-- If 3910-3915 support does not reverse price back up, look for NQ to trigger momentum algo sell programs that can tank NQ quickly down to 3880 support, then to below Thursday swing low if 3880 does not hold..
