NQ traded sideways on Friday, staying mostly between 4800 support and 4840 resistance. The fact that NQ breached that 4800 critical support level several times on Friday is an indication that 4800 support may be ready to break next time it gets tested.
Early Friday morning ramp failed to get NQ to break above 4840 resistance, and when the early afternoon re-test of 4840 failed to break above it, aggressive selling activities came into the market and sold NQ hard. 4800 price level continued to be aggressively defended, but it has been weakened.
Deflationary forces continues to drag the market down, the market looks very vulnerable to heavy selling. Bearish momentum divergence on the daily chart continues to get more pronounced.
On the short-term timeframe, key price level for NQ on Monday will be 4840.
-- If the usual overnight ramp could not keep NQ above 4840 sellers will come back in, support remains at 4800.
-- Staying above 4840 should keep sellers at bay. However, it would requires massive buy programs to push NQ above 4840.
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