Stock Market

NQ/QQQ Weekly Levels (Dec5-9) for CME_MINI:NQ1! by WadeYendall

The Nasdaq closed the week up 1.93% after trading in a range of 651 points. It was a volatile week filled with economic data. An explosive move on Wednesday propelled the NQ 517 points higher after weaker than expected inflation data and a speech by Powell. The NQ then gapped back down on Friday morning after NFP number but managed to recover the entire down move by the end of the day to close out the week at 12010 which is the high of the recent range. Price closed above the longer term 236 Fib RT & the key emas. The 200 sma and downward trend line continue to act as a price magnet for the bulls. This key resistance comes in at 12550. Posting the weekly chart this time as I see the 236 Fib RT as key support below and the 382 Fib RT as key resistance above.

• Coming off positive +1.93 % week

• Price above longer term 236 Fib RT and the key emas

• 200 SMA & downward trend line price magnet

S&P closed above the 200 SMA for the 1st time since March

• Longer term 382 Fib RT now lines up perfectly with the 200 SMA

• Lighter week for econ data

CPI and FOMC meeting scheduled the following week

• Massive move potential in either direction given key price location

• Historically bullish period for stocks

• Market torn between easing inflation & fears of a recession

DXY & bond yield have dropped substantially.

VIX is now below 20 = max complacency

• Massive yield inversion still a concern.

WEEKLY EVENTS

Monday US ISM Services PMI & US Factory Orders

Tuesday US International Trade

Wednesday BoC Rate Decision & US EIA Crude Inventories

Thursday US Jobless Claims

Friday US PPI & University of Mich. Sentiment

NOTABLE EARNINGS

Monday Nothing Notable

Tuesday BHP , MDB , TOL

Wednesday CPB , GME , THO

Thursday AVGO , COST, DOCU , LULU, ORCL

Friday Nothing Notable

BULLISH NOTES

Above 236 Fib RT & 9/21/55 ema

200 sma price magnet

Seasonally strong period for stocks

Declining bond yields

Less hawkish tone from Fed heads

Potential rally into CPI & FOMC following week

Many stocks developing bullish charts.

BEARISH NOTES

SPX at 200 sma resistance already

Stoch (5,1) very overbought at 85.90

Price already 14% off lows

Current rally did not start with a VIX spike

VIX below 20 = market overly complacent

Value/staple names leading current rally

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