Let's take a look at the NQ hourly chart. The gap from October 16th at 1743.75 is still wide open and bulls need to get back above 1729.75 and work on it quickly. Patient bears are probably waiting for a bounce at or near that gap close to go in and hit it, since it was also near the high of the week prior to opex. It is also upcoming weekly R1, so watch that level next week. Your first clue that bulls wil be heading that way is a closing 30 mn candle above 1723/1724, weekly pivot last week, and next week as well. Big number with lots of noise around it. My best guess at this point is that shorts will hit NQ hard at 1737. It marks the ex trendline support now resistance as well as 76.4%. If bulls close that gap at 1743.75 and hold above at end of day, be careful as they could press on to 1765/1767. Any failure at 1723/1724 sets up 1699/1700 rather quickly. Let the tape show you the way.
This entry was posted
on Saturday, October 21, 2006 at 8:48 PM.
