NQ/QQQ Weekly Levels & Trade Prep(Aug7-11)

SUMMARY

• 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%