On Thursday last week NQ broke decisively below key 50-dma support on the daily chart, triggering algorithm sell programs, tanking NQ down, but end of day profit-taking managed to rally NQ back to the 50-dma daily at the close, making the 50-dma daily as key line-in-the-sand for NQ on Friday.
Then on Friday, NQ opened at the key 50-dma but was not able to break above it, thus triggering another round of algorithm sell programs, tanking NQ further down to below Thursday swing low.
Again the end of day and end of week profit-taking activities managed to cause NQ to rally into the close but it closed way below the 50-dma daily, now acting as strong resistance.
For Monday, key intraday price level will be 7400. NQ closed above 7400 on Friday
-- If NQ remains above 7400 at the open on Monday and can stay above 7400 soon after the open NQ could rally up to 7520, which will be a strong resistance as 7520 is the current price level of the 50-dma on the daily chart.
-- If NQ trades back below 7400 on Monday it could trigger another rounds of selling, but with most trailing stop-loss now below Friday swing low of 7350, NQ would need to break below 7350 low to trigger another round of liquidation selling, if so the next potential support is at 7200-7250.
Downside target remain at 200-dma daily, at 7100
