NQ Weekly Levels (Dec18-22)

The market broke out of its three-week consolidation above the July high following dovish comments from Powell and the possibility of three rate cuts next year. The ES and NQ are now only 5% off all-time highs and have recovered almost all their losses from 2022. The rally has broadened as small and mid-caps played catch-up into the end of the year, posting strong weekly gains. All-time highs are now a possibility heading into the end of the year.

SUMMARY

• NQ finished the 7th week of gains up 3.14% after trading in a range of 610 pts.
  
• NQ broke out above the July high and starts the week at 886 Fib resistance (16832)
  
• NQ up 17% since Oct low and within 5% of ATH
  
• NDX at less 1% from ATH
  
• 1st Support at 9 ema (16564)
  
• Above the 886 Fib upside targets are the Jan 12th high, 1.272 Fib X and ATH.
  
• Below 9 ema the downside targets are the July 19th high, 21 ema and March 29th high
  
• Broad market strength continued with XLRE, XLI, XLB, XLY & XLF all making 3% plus gains last week.
  
• Econ data this week includes PCE, Durable goods, Consumer conf & GDP.
  
• Small & Mid cap showing relative strength
  
• Bullish setup into year end but pull back likely as price is overbought
  
• RSI 73 | VIX at 12.27 | 10 year 3.91%