NQ pullback high on Thursday was at its 20-ma on the daily chart. Since then, under very low volume globex session, buy programs has continued to push NQ higher.
NQ is now trading above its 20-ma on the daily chart, and also above its key resistance at 12,600, a key inflection price level on Tuesday.
When regular trading environment returns on Tuesday we shall see how and where NQ would trade in relation to its key inflection price, 12,600, bullish above it, bearish below it.
A trend-up short-covering day for NQ on Thursday as traders went home for the long weekend holiday. With most traders out of the market on holiday until Tuesday we could see choppy narrow range price action on short day Friday.
Key support is 12,125, resistance is 12,600-22,700. Needs a clear break out of the range to trend
Another choppy sideways trading pattern for NQ on Wednesday. 12,050 - 12,125 continued to be a strong resistance zone for NQ to break.
On Thursday 12,050-12,125 should remain to be key resistance zone. Failure to break above the resistance zone could starts to attract short-sellers into the market that could then tank NQ back down to a new lower low.
A clear and sustained break above 12,125 could trigger another round of short-covering. If so, the next resistance zone ia at around 12,550 - 12,700
NQ Opened with a gap-down on Tuesday, then after a brief decline, NQ rallied back to morning high, a sideways type of day.
On Wednesday key inflection price level will be at 11,800, bullish above it, resistances are 11,950, then 12,070-12,125.
Bearish below it,
With QT starting net week, June 01, anything is possible. The market is in oversold condition, but with the Fed draining liquidity from the market, the market may not get its oversold bounce. It may just continue to drop and drop.
Watch key levels, 12,500 for NQ, the last pullback high, and technical trailing stop-losses congregates just above that level.
On Monday NQ had a follow-up rally from Frioday low, and it closed at the high of the day, a trending up day for NQ on Monday. Overnight on Monday night, NQ is already trading down to near the day low on Monday.
Key price level for NQ on Tuesday will be 11,850, the 200-ma on the 5-minute chart.
Trading below 11,850 implies bearish day with the next downside target below Friday low. Whether or not NQ would breach that on Tuesday only time will tell.
Trading above 11,850 implies choppy sideways price pattern. NQ needs to trade above 12,125 to trigger more short-covering.
Friday was a typical day for Friday, downtrend in the morning, and uptrend in the afternoon, a sideways type of day.
Key inflection price level for NQ on Monday will be at 11,856, bullish above it with the first resistance at 12,070-=12,125,
And bearish below it, first support is at 11,650-11,700
A choppy sideways consolidation day for NQ on Thursday following a large down day on Wednesday. With Friday tendency to be choppy and sideways sideways type of day, we could see another choppy day on Friday, especially if it stays inside the range.
Choppy range on Friday will be from 11,850 - 12,125, key support is 11,850 and key resistance is 12,125
Breaking out of the range, especially below support, could cause massive decline, trending down day.
After three pullback rally days NQ resumed its downtrend on day 4. NQ sold off very hard.on Wednesday.
Following a large down day on Wednesday we could see NQ trading sideways on Thursday consolidating the large trending down day. To do so NQ would need to stay above Wednesday low. If so, NQ first resistance is 11,980, 12,125 and 12,226.
Trading below Wednesday low could cause NQ to trend down for the second day in a row, with key support at 11,700 double-bottom support..
A break below 11,700 is very bearish.
Tuesday was the 3rd pullback day for NQ. The pullback still has more room to the upside before it starts to run into resistance at 12,700-12,850.
12,500 will be a good price inflection zone, bullish and more rally if NQ can remain above 12,500, with the next upside target at 12,700 and then 12,850. and 13,000.
Trading below 12,500 implies a further drop to 12,400, line-in-the-sand. then 12,200.
Another sideways consolidation pattern for NQ on Monday, the second consolidation pattern in a row.
NQ could continue to pullback up for another day, for the third day on Tuesday. To do so NQ would have to stay above key support level at 12,225
Key intrday resistance is at 12,300. NQ could rally if it can stay above 12,300, with the next resistance at 12,500.
