NQ traded sideways in a narrow range consolidation pattern on Thursday following a huge ramp up day on Wednesday. The ramp up of stocks especially the stocks of major wall street banks such as Goldman Sachs should continue until Trump become President.
By then, the stock market will be in extreme overbought territory and investors sentiment should be in extreme bullish mode, a perfect setup for a major top and the beginning of a sustained major stock market reversal, the beginning of a multi year bear market. Whether or not it would starts immediately after Donald Trump inauguration, it is impossible to tell in advance simply because it depends entirely on the bankers.
Key price level for NQ on Friday will be 4800.
-- With NQ trading above 4800 there should not be much action as the market may simply traded sideways in a narrow range again, unless of course they would come up with massive buy programs again.
-- In a very unlikely even NQ break back below 4800 in a sustained manner, look for selling to come in.
