NQ and ES concluded the week in the green once again after testing the low of the recent range early in the shortened trading week for US markets. The NQ closed 1% off its (ATH), while the ES finished 0.56% off its ATH. The late-week recovery was fueled by another strong earnings report from NVDA, although big tech showed signs of weakness, closing out the week with most of the Mag 7 in the red on Friday as money rotated back into XLP, XLV, and XLB. Earnings season will wind down this week with reports from some big retailers, Canadian banks, and small-cap growth names. PCE data is on tap for Thursday, and the Fed heads will continue their speaking tour.
SUMMARY
SUMMARY
- NQ gained 1.35% las week after trading in a wide range of 771 pts.
- NQ has now closed 3 weeks above the 2021 high
- T1 = 1.618 Fib X (18118)
- T2= 2.24 Fib X (18477)
- S1 = 9 ema (17473)
- S2 = 2021 high (17706)
- Uptrend remains intact above the upward trendline.
- Sector rotation last week from XLK, XLC & XLY to XLP, XLB & XLV.
- Durable Goods & Consumer Confidence on Tues. PCE & Consumer Spending Thru. Manufacturing PMI on Friday.
- Earnings this week include reports from U, ZM, LOW, M, MARA, CRM, SNOW, CELH, BBY & Canadian banks.
- Elevated terrorist/war risk with escalaton of conflicts in the Middle East.
- RSI 59.55 | VIX at 13.74 | 10 year 4.25%
Comment:
Despite multiple attempts at a retest of the 1.618 level price fell away to S1 at the 9 ema. Look for price to hold here. If price fails to hold next support is the 21 ema then the 2021 high level.
Comment:
Look on the 1H.
Comment:
The 9 ema held beautifully. At intermediate resistance now at the 1.13 Fib X. This is an extension off the most recent pullback. The higher time frame 1.13 Fib x is still in play.
Comment:
Here is a bigger look. Note the the 9 ema has risen with bullish price action and I have re-drawn the levels.
