Market tested support last week and the recovered to close the week flat. NQ successfully retested the 21 ema and ES pulled back and recovered from the 9 ema. Market held to top of the range just below the July high setting up for a break in either direction going into this week's CPI data and FOMC rate decision.
SUMMARY
SUMMARY
- NQ finished the week with a gain of 0.41% after trading in a range of 362 pts.
- NQ successfully re-test the 21 ema and closed in the upper 3rd of the recent range.
- Dec Futures contract rolled over to Mar so continuous contract levels have changed
- First resistance is July 19th High (16466)
- First support is the Mar 29th High (16205)
- A move above the July 19th high makes a move to 16740 likely
- A move below the Mar 29th high makes a move 16000 likely.
- CPI data due out Tuesday & FOMC Rates decision on Wednesday
- XLE, XLP & XLB showed relative weakness while XLY outperformed
- With 10year yield at 4.23% risk assets cont to show strength with small cap growth & BTC posting another positive week
- VIX at 12.35
NQ blasted right through the July 19th level easily. Had expected a bigger pause there, but we have seen some serious panic buying. Upside target has been hit. Would expect some resistance in this zone but will remain cautious with shorts given the insane move. ATH is definitely in play. If price cannot hold the 1.13X at 16747. A move back to the July high is possible.
Note levels may have changed due to contract roll over.