NQ/QQQ Weekly Levels & Trade Prep(Aug7-11)
SUMMARY
ECONOMIC EVENTS
EARNINGS
BULLISH NOTES
BEARISH NOTES
- NQ finished the week with a loss of 3.05% after trading in a range of 510 pts.
- NQ closed back below the Mar 29th high & 9/21 emas.
- First support is now the 1.27 Fib extension
- Price is still above the HTF 618 Fib and Aug16th high
- All sectors closed red last week except XLE which closed 1.25% higher. Weakest sectors were XLK & XLU.
- Catalyst for Thursday sell off was the Fitch downgrade of US debt rating.
- Now in a seasonally weak period of the year.
- Long term bias remains bullish but deeper pull back to the lower trendline is now posible.
- Watching 10 yields as they pushed above 4.19% last Thursday
- Earning season continues with reports from CELH, BABA, UPS, LCID, PLTR & RIVN
- Key econ data this week includes US S&P CPI on Thursday & US PPI on Friday
ECONOMIC EVENTS
- MON Fed's Bostic & Bowman Speak
- TUES CAD Trade Balance, US Trade Balance, US wholesale inventories & Fed's Barkin speaks
- WED EIA Crude Inventories
- THUR US CPI, OPEC Monthly Report & US Initial Jobless Claims + Fed's Bostic & Harker speak
- FRI US PPI & University of Mich. Sentiment
EARNINGS
- MON ATVI, KKR, LCID, PLTR, RNG, SWKS, TSN
- TUES CELH, DDOG, DOCS, GLBE, GOLD, LLY, QGEN, QSR, RIVN, TTWO, TWLO, UA, UPS, UPST, ZTS
- WED BAM, DIS, ILMN, MFC, PLUG, RBLX, TTD, WEN, WYNN
- THUR AQN, BABA, WPM, YETI
- FRI Nothing Notable
BULLISH NOTES
- NQ still above the 1.272 Fib X keeping the 1.618 Fib X (16828) in play
- EMAs remain stacked.
- Price is only 10.26% of the ATH
- Potential bounce off of 55 ema
- Potential HTF 886 Fib price magnet.
- Potential positive reaction to CPI/PPI data
- Potential rotation into small caps.
- Buy the dip is back in favour.
- Market breath has improved.
- NQ is firmly in the long term bull zone. Above high time frame 618 Fib RT.
- New month inflows
- Stoch 5,1 is Oversold
BEARISH NOTES
- Price rejected at the Mar 29th high
- Lower time frame double top confirmed
- Broke below 9 & 21 emas
- Negative catalyst in Fitch dept downgrade.
- Seasonally weak period of the year for stocks
- NQ may need to test the 55 ema
- Potential deeper pull back to Aug 16th high & lower trendline.
- Potential negative reaction to CPI/ PPI data
- Price is stretched from the 200 sma
- Potential 10 year yield move above 4.20%
