NQ traded sideways in a very narrow trading range on Friday. The current upside momentum on the daily chart has drastically slowed down because most weak short-sellers and short-term traders have been squeezed out by five days of back to back rally days.
Unless they are willing to trigger more buy programs to keep the current stock market uptrend going to higher high, profit-taking selling may come in. If that leads to a violation of key support, stop-loss can get hit, triggering more selling activities.
On the short-term timeframe, key inflection price level for NQ on Monday will be 5440.
-- Trading above 5440 should keep selling to a minimal, and implies more sideway action or a rally to another higher high.
-- Trading below 5440 is likely to attract some selling, next support is 5428. A clear violation of 5428 could trigger trailing stop-loss that can quickly tank NQ down to the next support level, 5400.
