NQ Weekly Levels (Jan2-5)

The 9 week rally continued into the holiday week. NQ and ES both finished the week green despite a mild sell off on Thur & Fri back to their respective 9 EMAs. NQ started the new year above the Jan 12th high 4% off the ATH. ES started the new year at the 1.13 Fib X & above the July 27th high just 4.2% off the ATH. Market is overbought but the ATH remains a strong magnet for price.


SUMMARY

• NQ finished 9th week of gains up 0.24% after trading in a range of 222 pts.
  
• NQ closed above the Jan 12th high just 4% off ATH
  
• Price currently overbought and may need to test the 21 ema before bullish continuation
  
• 1st resistance is the 1.272 Fib X (17095)
  
• First support is Jan12th high / 9 ema ( 16945)
  
• A move above the 1.272 X level makes a test of the ATH likely
  
• A move below the 9 ema makes a test of the 21 ema likely
  
• Broad market support required to achieve ATH.
  
• Santa rally usually extends into the first few days of the NY.
  
• Sectors rotation showed defensive shift last week with XLV, XLU & XLP outperforming
  
• FOMC minutes due out Wed and NFP due out Friday.
  
• RSI 66 | VIX at 12.44 | 10 year 3.87%
  

Comment:

NQ starting the New Year in the red down 180 points before the cash open due to pressure on the the Mag 7 and rising bond yield. Won't be able to gauge the true trend until the cash open. Price now sitting at 886 Fib support. Next target lower is the 21 ema.

Comment:

$NQ_F The 21 ema target was achieved yesterday. Solid bounce from that zone. Price trying to reclaim the 21 ema. If price fails next level down is the July 19th high. FOMC minute due out at 2pm est/ 11am pst.

Comment:

$NQ_F The July 19th high has been hit. Offered a 80 point bounce from the bottom of the green box. Expecting decent support in this zone but a move down to the 55 ema / Mar 29th high is not out of the question. NFP on Friday.

Comment:

$NQ_F finished the week parked on the July 19th level. Easy week if you followed the levels. They are support or resistance until they are not. If they break look to the next level. Just manage risk along the way.