After a brief rally in the morning on Friday NQ sold-off into the early close as trader took profit ahead of the weekend.
Although the market is in extreme overbought territory on the daily chart and vulnerable to a fast sell-off, as logn as it does not break key support, the uptrend should continue.
Key price inflection level for NQ on Monday is 4340, key support for NQ on Monday is 4320.
-- Above 4340 is an indication NQ is going to higher high before pulling back.
-- Below 4340 implies NQ is in a pullback mode, first support is 4320. As long as 4320 is not clearly violated it shoudl resume its uptrend.
-- A clear break below 4320 is likely to trigger algo sell programs that can tank NQ quickly down to the next support level of 4300
As global recession intensify, and OPEC not willing to cut its crude oil production in response to declining global demand, look for crude oil price to tank down to $30 - $40 very quickly, resulting in accelerating global credit contraction, and also look for prices of gold and other metals and commodities to tank as well.
Global stock market collapse (crash) is not far away.
