Friday’s trade has something for everyone with strong downside and strong upside moves taking place within the first hour of trade.  The NQ dipped to 12519 just after the opening and then proceeded to ignite higher reaching the session high at 12928 within the next hour.  It was great trading and very profitable! It was also relentless in both directions, very fast in both directions, and very disjointed.  But not impossible.

Moving forward and for Monday – the wave pattern off of the 12719 low suggests a smaller wave 2 bounce may still be in force.  If this is the case what’s left to accomplish is another rally back to 12930 and once reached expectations would be for the “trap door” to drop open as prices drop.  A crash scenario cannot be ruled out, but I think at this point the action word, “crash” is subjective. Expectations should the NQ reach 12930 to 12950 would be for the market to reject the levels and decline with acceleration.

Support levels on a break below 12519 come in at 12273, 11970, 11748, 11540, and then 10990.  Resistance should be found at the 8, 20, and 50 MA’s with Fibonacci resistance at 12950.