NQ/QQQ Weekly Levels & Trade Prep (Apr 17-21)
More or less a copy paste of levels from last week as price remains stuck in a tight trading range. My posts have been limited simply because there has been little price movement. The market is clearly undecided with the bulls and bears are equally matches. Perhaps earning this week will provide a catalyst to get things moving.
SUMMARY
• Nasdaq posted a 0.27% gain last week after trading in a tight range of 329 points.
• Price remained above the 9/21/55 emas & 200 sma.
• Last week the NQ successfully re-tested the 21 ema.
• Current price consolidation is holding above the Feb 2nd high
• Strongest sectors to close the week were XLF, XLE & XLI. Weakest were XLRE & XLU
• Market remains in a wait and see mode after another low volatility week
• Earnings may provide the catalyst for a break from the current trading range.
• This week includes earnings reports from TSLA, NFLX, GS, BAC, MS, JNJ, CSX and more.
• NQ bullish momentum driven by Mega caps stocks making it vulnerable to a negative surprise from one or two stocks
• Key support and resistance zones remain the same as last week.
• Bearish Harmonic still in play with completion at 13640.
• Now in a historically bullish period for stocks
WEEKLY EVENTS
Monday NY Feb Manufacturing and Fed’s Barken speaks
Tuesday US Housing Starts, Canadian CPI and Feds Bowman Speaks
Wednesday EIA Crude Inventories & Canadian PPI + Fed’s Goolsbee & Williams speak
Thursday US Initial Jobless Claims, US Existing homes sales & Fed’s Waller and Mester speak
Friday US S&P Manufacturing PMI, Canadian Retails Sales & Fed’s Cook speaks
NOTABLE EARNINGS
Monday MTB, SCHW, STT
Tuesday BAC, ERIC, FHN, GS, IBKR, ISRG, JNJ, LMT, NFLX, UAL
Wednesday AA, ABT, ALLY, BKR, DFS, EDU, IBM, KMI, LRCX, LVS, MS, STLD, TRV, TSLA, USB
Thursday AXP, BX, CSX, DHI, GPC, NUE, PM, PPG, STX, T, TSM, UNP
Friday FCX, PG, SLB
BULLISH NOTES
NQ held Feb 2nd high
Bullish consolidation at recent high
Price above 9/21/55 ema and 200 SMA
50 SMA is above the 200 SMA
Harmonic completions zone at 13604 may act as magnet
Now within Longer term Fib neutral zone.
Dropping yields and USD
Potential positive reaction to Fed Heads & earnings
Historically bullish period for stocks
Earnings season gets into full swing
BEARISH NOTES
Opening week still below 786 Fib resistance
Potential negative reaction to Fed Head talk
Potential negative reaction to earnings
Potential rise in OIL prices will increase inflation
Momentum concentrated in a small number of stocks
Potential hard reversal at harmonic completion zone (13604)
Yields and the USD close to support and may reverse trend
SUMMARY
• Nasdaq posted a 0.27% gain last week after trading in a tight range of 329 points.
• Price remained above the 9/21/55 emas & 200 sma.
• Last week the NQ successfully re-tested the 21 ema.
• Current price consolidation is holding above the Feb 2nd high
• Strongest sectors to close the week were XLF, XLE & XLI. Weakest were XLRE & XLU
• Market remains in a wait and see mode after another low volatility week
• Earnings may provide the catalyst for a break from the current trading range.
• This week includes earnings reports from TSLA, NFLX, GS, BAC, MS, JNJ, CSX and more.
• NQ bullish momentum driven by Mega caps stocks making it vulnerable to a negative surprise from one or two stocks
• Key support and resistance zones remain the same as last week.
• Bearish Harmonic still in play with completion at 13640.
• Now in a historically bullish period for stocks
WEEKLY EVENTS
Monday NY Feb Manufacturing and Fed’s Barken speaks
Tuesday US Housing Starts, Canadian CPI and Feds Bowman Speaks
Wednesday EIA Crude Inventories & Canadian PPI + Fed’s Goolsbee & Williams speak
Thursday US Initial Jobless Claims, US Existing homes sales & Fed’s Waller and Mester speak
Friday US S&P Manufacturing PMI, Canadian Retails Sales & Fed’s Cook speaks
NOTABLE EARNINGS
Monday MTB, SCHW, STT
Tuesday BAC, ERIC, FHN, GS, IBKR, ISRG, JNJ, LMT, NFLX, UAL
Wednesday AA, ABT, ALLY, BKR, DFS, EDU, IBM, KMI, LRCX, LVS, MS, STLD, TRV, TSLA, USB
Thursday AXP, BX, CSX, DHI, GPC, NUE, PM, PPG, STX, T, TSM, UNP
Friday FCX, PG, SLB
BULLISH NOTES
NQ held Feb 2nd high
Bullish consolidation at recent high
Price above 9/21/55 ema and 200 SMA
50 SMA is above the 200 SMA
Harmonic completions zone at 13604 may act as magnet
Now within Longer term Fib neutral zone.
Dropping yields and USD
Potential positive reaction to Fed Heads & earnings
Historically bullish period for stocks
Earnings season gets into full swing
BEARISH NOTES
Opening week still below 786 Fib resistance
Potential negative reaction to Fed Head talk
Potential negative reaction to earnings
Potential rise in OIL prices will increase inflation
Momentum concentrated in a small number of stocks
Potential hard reversal at harmonic completion zone (13604)
Yields and the USD close to support and may reverse trend
Comment:
On Monday the $NQ_F continued to chop in the recent range bouncing off the Feb 2nd high. Moving to the top of the range now. A break of the 786 Fib is likely to lead to a push up to the 886 Fib and the harmonic completions zone mentioned last week at 13640.
Comment:
Price action looked promising yesterday, but then fell back into the range. Trapped by the gravitational pull of the Feb 2nd high. Short quick range trades are best right now which is selling the high and buying the low of range until something breaks. Need a catalyst. Perhaps TSLA earning will do it.
Comment:
More of the same for $NQ_F. Chopping above the 21 ema making 100% retracement moves daily. Very frustration price action for those hoping for a long term trend. Continue to play the edges until something breaks.
