After trading sideways in the morning on Friday the shorts finally
covered in the afternoon triggering a short-covering rally until
the close, just below 4060 key resistance for Monday.
On a larger time frame, NQ is still stuck inside a choppy trading range on the daily chart, between 4000 support and 4100 resistance. NQ would need to clearly break below 4000 in order to trigger a multidays trending down move to the next major support between 3700 - 3725. Staying above 4000 is an indication NQ is continuing to chop around between support and resistance.
On the short-term time-frame, the 5-minute chart, key support lies at around 4025 - 4030 on Monday.
-- Above 4025 in the morning on Monday is an indication that NQ is still in an uptrend, with the next resistance at 4060. A clear break above 4060 could trigger momentum algo buy programs, next resistance is at 4090 and 4100.
-- A sustained break below 4025 implies NQ is going back down to the recent low. Supports are 4000 and 3980.
