NQ traded sideways in a narrow range on Friday after a massive buy program triggered soon after the open failed to push NQ up to a higher high. NQ continues to struggle below September 01 swing high.
Since its June pullback low, NQ is building a bearish ending wedge pattern on the daily timeframe, Elliott Wave refers to as Ending Diagonal. Ending Diagonal usually has a 5-wave structure before completion. It is now in its 4th wave, and near completion, and it would take another one to two weeks before the ending pattern completes.
Completion of the pattern implies the end of the current uptrend and the beginning of a downtrend, .
On the short term intraday timeframe, key inflection price level for NQ for Monday will be 5990.
-- Trading above 5990 indicates a bullish bias, with the next resistance at 6020, a double-top resistance from September 01 high.
-- Trading back below 5990 is bearish, next support is at 5940
Economic Cycle Research Institute Weekly LEI is pointing downward, indicating potential recession coming soon.
