After another sharp early morning sell-off with NQ tanking down to key intraday support, it rallied the rest of the day closing art the day high, and in extreme overbought territory on the intraday five minute timeframe.
NQ 5-minute Chart
NQ 5-minute Chart
NQ is also in extreme overbought zone on the 60-minute time-frame and the daily time-frame, setting up a very high probability large (500-600 NQ points) 2 to 3 days pullback decline, key support is about 10,300 area.
First key price level to watch for would be the 200-ma on the 5-minute timeframe, currently at 10,700, but the most important price level to violate to confirm the 2 to 3 days pullback down is its prior day low because trailing stops are currently congregating just below prior day low. A clear and sustained break is likely to trigger a cascade of sell orders as trailing stop-loss gets run-over.
Key intraday line-in-the-sand for NQ on Monday is 10,775
-- Bearish below
-- Still bullish above it.
