Friday trading action followed the normal trading pattern we would normally see on Friday. it was a typical choppy sideways action.
Friday low found support at the 50-moving average, a price level that stalled and reversed early morning selling as NQ eventually break-back above key inflection price level at 5355 and then continues its choppy narrow range up-trending move.
On the 60-minute timeframe chart, however, it is showing a bear flag. In a free a free market the next move will be down, but we do not currently have any free market as all markets are extremely manipulated, so anything is possible.
Key inflection price level for NQ on Monday will be 5365.
-- Trading above 5365 is an indication NQ is likely going to rally to another higher high.
-- Trading below 5365 could attract some selling with the next support at 5355, then 5345.
-- Key support is a gap-close price level at 5332
The looming debt ceiling deadline is March 15, 2017, and if the debt ceiling is not raised, there could be violent selloff in the equity market and other markets as well.
On February 12, 2014, the Temporary Debt Limit Extension Act was passed, suspending the debt ceiling until March 15, 2015. At that time, the Treasury Department took extraordinary measures. On October 30, 2015 the debt ceiling was again suspended to March 15, 2017.
