NQ Weekly Levels (May13-17)

Here are the levels I'm using this week. Key things to watch are the PPI & CPI data as well as earning from big retailers WMT and HD. Powell also speaks this week on Tuesday. Bullish momentum continues but NQ is coming into a completion zone for a bearish Harmonic at the 886 Fib. Potential bullish momo into that level then heavy resistance.

SUMMARY

• NQ posted a 1.19% gain last week after trading in a 365 pt range.
  
• NQ pushed up to the 786 Fib retracement then pulled back to the descending trendline.
  
• R2 = LTF 886 Fib RT (18519)
  
• R1= LTF 786 Fib RT (18355)
  
• S1 = LTF 618 Fib RT (18082)
  
• S2= 2021 High (17957)
  
• Price has completed a measured move into the 786 Fib.
  
• Bearish Harmonic pattern now in play with completion zone at 18519.
  
• Heavy week of econ data ahead with PPI on Tuesday, CPI on Wednesday and Powell speaking.
  
• Notable strength in defensive XLU & XLP sectors
  
• Earnings from big retailers WMT & HD due out.
  
• Sell in May effect in play.
  
• RSI 56.97| VIX at 12.56 | 10 year 4.50%
  

Kommentar:

After spending a couple of days below the 786 resistance price has pushed into the bearish harmonic completion zone at the 886 Fib retracement. Expecting resistance here, but given the strong bullish momentum a push to the ATH is also possible. The stop on the bearish harmonic is much higher so best to watch for a topping pattern before any short entry.