The stock market continued to rally in a narrow trading range again on Friday. Without new buyers, the current uptrend should continue to be choppy as the only main buyer in town, fighting the global forces of deflation, is the Fed itself, with other major central banks, the ECB, BOJ, PBOC, are also too busy fighting their own deflation forces with continuous rounds of massive money printing.
How much time is left before the fiat paper money system totally collapses, and the new gold-back money system replaces it, only time will tell, but it does not seems to be very much longer. We can see that all fiat currencies has been falling against commodities such as oil, and previous metals such as gold, even though central banks have been suppressing their prices with all their might.
But as traders, we must continue to trade price patterns, and the direction of our trades would depends on the timeframe we are trading in. Both the daily and the 60-minute timeframes are currently in an uptrend, but are now in overbought condition, and without a large pullback, the current uptrend is going to continue to be choppy and narrow range.
Key price level for NQ on the 5-minute timeframe for Monday will be 4400.
-- Bullish bias above 4400, with the first upside target is a break above Friday high.
-- Bearish below 4400, first support is 4390, then 4365.
