NQ traded sideways inside a very narrow range on Friday, setting up a potential big move trending on Monday.
Knowing that the general public is overly pessimistic about the future with most small traders heavily short the market, the Fed is going to aggressively push the market higher in order to run over the stop-loss thus triggering a short-covering rally.
Key inflection price level for NQ on Monday will be 4150.
-- If NQ can remains above 4150 the shorts are likely to cover, triggering short-covering rally with the next upside target at 4300, but key resistance remains at around 4200, and in order to get a fast short-covering rally, NQ would need to break clearly above 4200.
-- Trading below 4150 is an indication the current pullback-down move is still in progress. If so the next key support is at 4075, and only a clear break below 4075 could negative the current bullish setup.
