The positive (bullish) divergences & overbought conditions on /NQ & QQQ highlighted in Friday’s video have started to play out for a bounce so far with arrow breaks denoting the potential near-term bounce targets for this week.
QQQ 60m Nov 2nd
With the solid positive divergences in place at the close on Friday, /NQ started rallying when trading resumed overnight & into this morning, already hitting the top of the first target zone (11167-11228 + channel mid-point) earlier today. Essentially, the next buy signal will come on a solid break above 11228 which will also have taken out the channel mid-point line, thereby opening the door to a rally up to the downtrend line/top of the price channel. Of course, a solid break below Friday’s lows would be bearish & most likely open the door to a move back down to test the Sept lows.
NQ 60m Nov 2nd
I should add that the near-term bullish outlook based on the posture of the 60-minute charts is somewhat offset by the recent bearish developments (breakdowns, etc…) on the more significant daily time frames on many key stocks & sectors over the past week or so. As such, I will follow up with some former support, now resistance levels on some of those key stocks & sectors which might come into play this week & offer objective levels to book profits on long-side bounce trades or add to (or initiate) a short position.