On Friday the equity market and NQ opened just below the massively manipulated Thursday close when a huge buy programs triggered by the Fed proxy buyer just after the close of the cash market on Thursday, designed to keep the market in positive momentum.
However, even with Friday's open just slightly below the Thursday's close, the market sold off very hard on Friday. all day into the close, with NQ dropping over 200 points from Thursday close, in a 5-wave decline and at the end of the day on Friday looks ready to retrace the decline or reversed back up again on Monday.
Key price level for NQ on Monday will be 9020.
-- If NQ can trade above 9020 at the open on Monday, it is an indication NQ is on its way up to retrace percentage of the entire decline from Thursday swing high to Friday swing low.
-- If NQ is going to sell-off again on Monday, the morning rally should stop below 9100 area, with 9090 the location of the key 200-ma resistance on the 5-minute chart, and 9100 the 50% Fibonacci retracement of the entire decline, and the upper keltner channel resistance on the 5-minute chart.
-- However, should the Fed buyers is able to push above 9100, the intraday algos will reverse from selling to buying, as such could cause NQ to rally further up.
-- Should NQ trade back below 9020 there is a possibility the selling that started on Friday should continue.
However, with a huger down day on Friday we could also see the market trades sideways below 9100 on Monday, which will setup Tuesday selling.
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