On Friday, monster buy programs by the Fed triggered right at the open designed to trigger short-covering rally, failed to reversed the downtrend as NQ got sold-off hard in the afternoon and into the close.
NQ is now approaching oversold conditions on both the daily chart and the 60-minute chart. Whether or not it would lead to an oversold bounce on Monday only time will tell, but during a strong trending move, the market can stay oversold for an extended period of time, so it is just something to watch out for.
Key inflection price level for NQ on Monday is 4220.
-- Below 4220 is an indication NQ is still in a fast mode down, with the next support at 4170, but the enxt strong support is at 4100.
-- Breaking back above 4220 implies a larger pullback-up is likely to happen, with the next resistance at 4245-4250. If NQ can break and stay above 4250 it is likely to trigger short-covering rally, next resistance is 4300.
