A sideways consolidation day for NQ on Friday. With the S&P 500 Futures (ES) just breaking out above its prior swing high (July high 1985 area) during this coming week, ES either rocket up if short-covering is triggered which should drag all the other major indices with it, or it pullback down dragging all the other indices down with it, which is it going to be we have to wait for this coming week. Key price inflection level on the daily chart for the ES is 1985 -- bullish above it, bearish below it.
NQ key price level for Monday is 4050.
-- Looking for more rally above it, a choppy rally or a strong rally if short-covering can get triggered in the ES market.
-- Trading below 4050 may trigger a long overdue pullback, with first target down of 4020-4030 area support. As long as 4020-4030 support hold, we should see another higher-high.
Cycle top on the daily chart is expected to occur during the week of September 1 for a larger daily pullback, expected to be a multi-months pullback ahead of the annual year end santa clause rally.
