NQ Weekly Levels (Nov6-10)

7 Nov 2023

Here's a look at the levels I'm using this week. Clearly the trendline is major technical resistance and many traders will be watching it closely. Market expects a pullback here or at least a pause in the upward trend. If price breaks through trendline, however, we may see some panic buying. Upside target would be the 618 Fib. First downside target would be the 55 ema.

SUMMARY

• NQ finished the week with a gain of 6.74% after trading in a range of 907 pts.
  
• Massive reversal from the Oct 26 low. Up 7.40 % (1046 pts) in 6 trading days.
  
• NQ has reclaimed the Bull Zone and trading back above the 9/21/55 emas and the 200 SMA
  
• NQ has successfully retested the Aug 16th breakout point.
  
• Positive reaction to both FOMC rate pause & NFP
  
• 10year yields have dropped from 5% down to 4.57%
  
• Entering the most bullish quarter of the year
  
• All sectors ended the week green led by XLRE & XLF.
  
• Potential catch up move for small caps and growth names
  
• Light week of econ data ahead but many Fed Heads speaking
  
• Earnings will be dominated by small cap growth names this week.
  
• Follow through confirmation required to see if the recent rally is more than heavy short covering.
  

9 Nov 2023

Catatan

NQ_F stair stepped it way into the 618 Fib. Price has been trading in a sideways range at the 618 since Tuesday. Price feels extended here but another bullish spike is possible as the Oct 12th pivot high has not been touched yet. Next upside target is the 786. If price reverses look for a move back to the 55 ema.