On Friday NQ rallied in the morning then decline in the afternoon into the close, a typical Friday pattern as traders balances their book going into the weekend.
As of the close on Friday NQ remains in a strong bullish mode on both the daily timeframe and the 60-minute timeframe. However, both are in overbought condition, and vulnerable to a sharp pullback. And if the pullback violates key support, it could lead to a deeper pullback.
Key support for NQ on Monday will be 7310.
-- As long as NQ continues to trade above 7310 there is really not much selling pressure. As such NQ could continue to rally to higher high with the next major resistance is at 7400.
-- Trading below 7310 could start to run-over some trailing stop-losses that could quickly tank NQ down to the next support level which is at 7240, a strong support level. The stock market would need to get very bearish to break 7240 support.
