NQ/QQQ Weekend Look (Sep20-24)

Here is the weekend look for the NAS. Interesting Friday price action as mentioned in my recently posted Weekend chart for ES. NAS is looking stronger than the SPX. It closed on the top of the neutral which is a positive. If we take out the Friday low look for a compound correction or an AB=CD move. Green boxes identify areas of potential support for bounce plays or a full fledged reversal.

Of Note:

FOMC meeting this Week
Watch 10y rate and small cap reaction.
Weakness in a few mega cap names could bring the indexes down quickly.

Comment:

Substantial drop today. Price cascaded lower breaking through the top two green zones with only temporary pauses on the way down. Very emotional selling and likely some margin calls. Tough day to trade but watching the ema cloud can be helpful. Note that the ema cloud was not broken to the upside until the last level was reached. The cloud is a very effect tool to use for assessing trend, especially on days like today.

Comment:

A retest of todays low is likely before a full reversal happens.

Comment:

Same look as ES. Compound correction is completed and a modest test of the recent low was attempted. Positive price action so far following FOMC. Here is the new neutral zone. Expect resistance at the top of the Neutral and the 21 ema. Above there we get bullish again.

Comment:

Example of what I mean by expect resistance at the top of the neutral.