The stock market opened with a huge gap-up on Friday. After trading sideways for a short period of time after the open selling started to overwhelmed buying. The stock market started to tank hard. On the daily chart, the set-up is bearish.
The Dow Future, the YM is showing lower highs.
On an intraday basis the stock market is in sell mode. Thus on Monday, to change the bias from bearish to bullish, the market has to re-break back above its intraday line-in-the-sand, which, as of the close on Friday would be resistance level.
For NQ its L-I-S for Monday will be at 10,000.
-- NQ will remained in bearish mode below 10,000, with the next lower support at 9700. A break below 9700 is very bearish.
-- If the Fed can push NQ back above 10,000 on Monday we could see some shorts starting to cover, and thus can cause a short-covering rally.
