I believe that NQ is getting a little too heated with the rally in the past couple of weeks. The trend is definitely more bullish with the 1M and 1W MA beginning to curl up and acting as support, but I think we have gone up too quickly and are due for a correction. This doesn't mean that we can't go higher, but I believe we will see it cool off next week.
With the 0.618 fib level acting as resistance, we may see a correction back down to retest the 0.5 level, which corresponds to the local top back in August. This would be the healthiest for a true recovery to a bull market.
Another reason why I think we will see NQ cool off is due to the RSI hitting the red Bollinger band, just beginning to become overbought.
For now, I am looking for a reflexive drop to trade, but that doesn't mean I am long-term bearish.
This is not financial advice. Conduct your trades with your own research and ideas.
With the 0.618 fib level acting as resistance, we may see a correction back down to retest the 0.5 level, which corresponds to the local top back in August. This would be the healthiest for a true recovery to a bull market.
Another reason why I think we will see NQ cool off is due to the RSI hitting the red Bollinger band, just beginning to become overbought.
For now, I am looking for a reflexive drop to trade, but that doesn't mean I am long-term bearish.
This is not financial advice. Conduct your trades with your own research and ideas.
Comment:
The market continued to move higher, so my call was a little too early. However, I believe that we have hit some major resistance. See my most recent post on QQQ.