Nasdaq 100 May 07 to May 11 Outlook

By News Robot

Lawrence’s Comment

Recap
Just like Dow, consolidation was expected and we got exactly that until Friday. On Friday, NQ gapped thru Y-0 and trapped longs turning into roadkills. Closed the week near its low.

Outlook
NQ closed its huge gap from the week before last one so the primary excuse to drop is used up.

From here, weekly support right below B-1 is in play. Hence if NQ flush below B-1 and snap back up quickly then potential w. spring pattern will emerge. That points to at least a run to B-0.

If initial bounce from B-1 failed to go more than 1% and collapses below B-1, then we have full blown selloff in the making. B-2 to B-3 will be in play and it is not a good idea to pick bottom until after B-2 is tagged.

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