Volatility is currently back, at least until last week Friday, VIX level remained elevated, indicating the market is in a larger swing mode, with NQ swinging fast and furious.
Gold and crude oil continued to tank, an indication that global credit contraction is intensifying, and could, at some point, get out of control and crash the stock market.
On Friday, NQ opened with a gap-up above key resistance which trigger massive momentum algo buy programs that rocketed NQ up to the next resistance zone 4025 before trading sideways into the close.
Key price level for NQ going into Monday trading is 4025.
-- A re-break back above 4025 could trigger another round of algo buying programs, next resistance is around 4060 - 4070.
-- Trading below 4025 implies NQ is in pullback down mode, and as long as it does not violate key support 3990 - 4000, NQ should resume its uptrend that started on Thursday.
-- Breaking back below 3990 could trigger momentum algo sell programs that can tank NQ back down to re-test Thursday swing low.
