After three consecutive days of strong rally, NQ traded sideways on Friday, a consolidation day, setting up another trending up day on Monday or setting up a larger pullback decline on Monday. It will depends very much on the price of the crude oil and where it trades in relation to its technical support/resistance levels.
A sell-off in the price of crude oil below $45 is very bearish for the equity market and has the potential of triggering a sell-off in the equity market than can break through supports.
Staying above $45 has a stabilizing effect on the equity market. If so, we can see another leg up in NQ, perhaps after a sharp morning decline.
Key support for NQ on Monday will be 4235-4245
-- Staying above 4235-4245 is an indication that the current fast uptrend is still in progress and the next resistance is 4325 and then 4350.
-- Breaking below 4235 implies NQ is going into a larger pullback-down mode, with the next support at 4220 and then 4200
