With most traders busy with Donald Trump presidential inauguration on Friday, the stock market simply traded sideways in a narrow trading range.
Now that Trump inauguration is out of the way the stock market can move out of the current trading range. Although the stock market is in overbought conditions on the daily chart and is vulnerable to some sharp selling, any selloff is sure to attract buyers until key support is broken to the downside.
For NQ the key support remains at 5000. with the Dow and the S&P both remaining above their respective 50-DMA support.
On the short term intraday 5-minute time frame, key price level for NQ on Monday will be 5060 with 5045 as key support.
-- Trading above 5060 is an indication NQ is still going to target higher high, a break above Friday swing high before profit-taking selling pressure pulls NQ back down.
-- Trading below 5060 implies a pullback down to first and key support at 5045. Should selling breaks clearly below 5045 the next lower support level where buyers come in is 5000.
