Again, NQ continued to trade sideways in a choppy narrow range trading action on Friday. Without any new buyer, as everyone who wanted to buy has bought and are now still holding long positions, and without new sellers because NQ is still trading above key support level, the 20-dma on the daily chart, NQ is going to continue to be choppy, narrow-range and non-trending.
Until NQ breaks below key support, it is going to continue to be choppy and narrow range, unless it can trigger some sort of short-covering on Monday.
Key balance point for NQ on Monday is 7390.
-- Bullish above 7390, upside target is a break above Friday swing high.
-- Bearish bias below 7390, with first support at 7360. Should NQ clearly break below 7360 we could see a quick drop down lower, next support is 7280..
NQ is deeply overbought on the daily chart. However, on Friday, President Trump National Economic Advisor, Larry Kudlow, is asking the Fed to lower interest rate by 50 basis points, which, if the Fed comply, could cause some short-covering rally.
