NQ/QQQ Weekly Levels (Oct23-27)
Summary
- NQ finished the week with a loss of 3.03% after trading in a range of 687 pts.
- NQ rejected at the 55 ema and dropped 458 pts closing below the Aug 18th Low
- Price is now below the 9/21/55 emas
- The Aug 16th high and the 200 SMA are now in play to the downside
- Bond yields continued their uptrend with the 10 yield tapping 5% for the first time since 2007.
- Despite rising yields and the backdrop of war Powell's speech remained hawkish.
- Gold & Bitcoin are showing strength.
- Only sectores above thier 200 SMAs are XLV, XLE, XLC, XLI & XLK
- Huge week of earning ahead with reports from AMZN, MSFT, META & GOOGL.
- Econ data this week includes PCE, BoC rate decision & Powell speaks again
- NQ closed below the bull zone dropping back below the longer term 618 fib retracement.
- Escalation of the Israeli/Hamas conflict is a serious risk.
Comment:
$NQ_F has bounced sharply from the top of the green box. Price is now back at Aug 18th low resistance. Price must establish above the Aug 18th level for bullish continuation. Caution with longs as today's move may only be heavy short covering from very oversold conditions before mega cap earnings.
Comment:
So the initial $NQ_F bounce on Mon/Tues was indeed only short covering and the market proceeded to sell off sharply after rejecting at the Aug 18th low. Price sliced through several levels easily, suggesting panic selling. Currently price has flushed below the 200 SMA and is attempting to regain it. The 200 is now the bull/bear line. Above it look for a move back into previous levels. Below it look for a move down to the higher time frame 382 Fib retracement.
Comment:
Worth noting the divergence between the NQ and the QQQs. QQQs have yet to hit the 200 SMA. This may act as a downside magnet given the heavy option volume on the etf.
