The NQ & ES successfully retested their respective 21 emas and had very strong bullish continuation on Thur & Fri breaking key resistance. NQ closed above the Dec 28th high and the ES finished the week above the Mar 29th high. ATH is in play for both this week. The NDX and SPX have already made new ATH's and have room to their 1.13 Fib extensions. Odds of a blow off move then hard reversal is high.
SUMMARY
SUMMARY
- NQ finished the week with a gain of 2.99% after trading in a range of 775 pts.
- NQ successfully tested the 21 ema.
- NQ closed above the Dec 28th high after recovering more that 3.5% on Thurs & Fri.
- ATH clearly in play
- Earnings season heats up with key reports from TSLA, NFLX, TNX, LMT, MMM, V, VZ & INTC
- AI hype drove XLK and chip stocks to new highs led by NVDA which gained 20% in 2 weeks.
- Market strength remains consolidated in mega caps
- NQ is heavily overbought with a Stoch (5,1) reading of 98.91. XLK has a Stoch (5,1) reading of 99.61
- Potential for a blow off move higher is very high.
- Econ data includes PMI on Wed, Durable Goods on Thurs & PCE on Friday.
- RSI 70.45 | VIX at 13.31 | 10 year 4.13%
Comment:
NQ pushed into the ATH then started to roll over to finish the week. Topping pattern has formed on the 1H and 4H. Likely need to wait for mega cap earnings before get confirmation of the future direction. Pull back makes sense at then point but the bulls are still strong so hard to predict.
