A small rally for NQ on Thursday.
Ahead of the long Labour Day weekend, when the market will be closed on Monday, we could expect the market to chop sideways, unless of course the market get an unexpected market moving news.
NQ continued to trade sideways on Wednesday. It is still consolidating inside a bullish-bias zone. Thursday may be the day it breaks out and rally, we shall see.
Key level for NQ to trigger the next trend up is at 23,650 and then pushes higher. A better setup would be for NQ to oen with a big gap-up that would force the shorts to cover.
Key support is 23,450
A big rally for the stock market on Friday as the Fed Powell was very dovish, ready to aggressively cut short term rate in September, perhaps by 50 basis point.
If the rally can continue on Monday/next week, we could see capitulation by the shorts. If so we can get a parabolic rally that could last for several weeks.
For NQ, key price inflection level is at 23,500, bullish above it but less bullish below it.
A sideways price action for NQ on Thursday ahead of the Fed Jackson Hole meeting. The market may continue to trade sideways until next week when the Fed policy may be more clear after the Jackson Hole meeting.
A sharp sell-off for NQ om Wednesday morning down to key support, then found enough dip buyers at support, and rally into the close.
The Fed will have their annual meeting in Jackson Hole on the weekend. There will be some major announcement, including hinting on a large rate cut in September.
The stock market is in very overbought condition on the daily and weekly time-frame, and that could set-up a large pullback into the year end.
Key resistance will be at 23,400, bullish above, bearish below it.
A sideways price action for NQ on Thursday At the end of the day it looks like NQ is going down and may open with a gap-down and then run down to support before bouncing back up again, that is as long as it does not violate support.
Key support for NQ on Friday will be at 23,750 - 23,800, bullish above, bearish below it.
NQ continued to make higher high as liquidity remains in abundance frustrating the bears. The rally should continue with or without a major pullback
On the larger daily and wekly timeframe, key support is now at 23,450, bullish above it ans it continues to squeeze the short.
On the intraday basis, for Thursday, key support is at 23,750 - 23,800.
The recent 2-day pullback down to re-test breakout level was a 400 points missed, an indication that the pullback was very bullish.
The failure to come down all the way to retest the previous swing high of 22,400 is an indication many waiting to buy would missed the boat and those waiting to exit their wrong short trade were not able to get out of their trade.
As such the rally that followed was sharp and could last for a while as investors who missed the entry has to chase the trade higher and those holding short position continue to get squeezed.
The next upside target is 24,500 - 25,000
