/NQ (Nasdaq 100 futures) has just hit my “if things get ugly target” of 14424 with the divergences hanging on by the skin of their teeth, providing about a 12% gain from the multiple objective short entries highlighted around the 16445 resistance level & uptrend line breaks around that level. Previous (Dec 3rd) and updated 120-minute charts below. Note: That support level/target changed slightly when futures rolled from Dec to March contract.
NQ 120m Dec 3rd
NQ 120m 2 Jan 21st
On one hand, /NQ is trading at support as well as the S&p 500 still within close proximity to its 200-day moving average. On the other hand, the stock futures (/NQ & /ES) have now made impulsive breakdown below that bear flag continuation patterns that were highlighted on the 60 & 120-minute charts earlier today. Bottom line: Those bear flag breakdowns could be the catalyst for more impulsive selling in the futures on Sunday evening & into Monday’s trading session or the indexes could just as well bounce off these support levels when trading resumes next week. Not a bad time to lighten up on market exposure if heavily long or short as we head into the weekend in order to minimize the risk of being caught on the wrong side of a gap come Monday morning.