On Friday NQ opened with a huge gap-down but then reversed and rallied most of the day, closing just below key resistance level, 7035, which will serve as our key line-in-the-sand for Monday.
Should NQ trades above 7035 on Monday, with or without a gap-up, it is likely to trigger some short-covering, which could cause a rally. If so we could see a rally to 7075 resistance before dropping back down towards the 7035 area. However, if the market would get very bullish the next very strong resistance is at 7100.
Failure to trade back above 7035 is bearish, an indication NQ is going back down. If so, first support zone is 7000. If that support is breached we could see NQ trading down to test Friday's swing low. A break below Friday swing low that is accompanied by very bearish market internals could cause a large down trending move.
