Review and dynamics
At the end of last month, the index NQ100 has broken out the local resistance level of 4835.0 (the highs of this summer and annual highs of 2016), which is by 100 points or 2% higher than the highs of 2015. The price has reached the new annual highs at the level of 4892.0. The index continues to rise in the ascending channel on the daily chart, with the upper limit near the level of 4932.0.
On the weekly chart, the index is also in the ascending channel. The index NQ100 demonstrates the highest rise compared with the other major US stock indices. However, although the upward momentum continues, it is not developing, which suggests that long positions are not preferable.
On 4-hour, daily, weekly and monthly charts the indicators OsMA and Stochastic give mixed signals. The decline in the index will be possible only after the decline in price below the level 4835.0 and the fall to the bottom line of the ascending channel on the daily chart at the level 4676.0 (Fibonacci 23.6% after the lows followed after the UK Brexit referendum at 4180.0 and the lower limit of the ascending channel on the daily chart).
Breakdown of the support levels of 4582.0 (Fibonacci 38.2% and ЕМА200 on the daily chart) and 4505.0 (Fibonacci 50.0%) may cause the change in the positive momentum and prevent the rise in the index.
Despite expectation of the increase in the interest rate in December, the US stock market is likely to maintain positive momentum.
Support levels: 4835.0, 4765.0, 4717.0, 4676.0, 4582.0, 4535.0 and 4505.0.
Resistance levels: 4892.0, 4900.0, 4950.0 and 5000.0.
Sell on the market. Stop Loss: 4893.0. Targets: 4835.0, 4765.0, 4717.0, 4676.0 and 4582.0.
Buy Stop: 4893.0. Stop Loss: 4865.0. Targets: 4900.0, 4950.0 and 5000.0.
In the ascending channel
Important level of 4835.0