A sideways choppy day for NQ on Tuesday. NQ is really struggling to rally above 21,550 resistance and is now looking likely to pullback down to lower level before attempting to break above 21,550.
Supports are 21,300, 21,200 and 21,00.
It is a choppy zone between 21,000 to 21,550.
The stock market opened with a huge gap-down but buy programs likely from the Trump administration team pushed the stock market upward but again stopped at 21,550 resistance for NQ, a major resistance going forward.
Buy program is likely to continue for a while. For NQ key resistance is now at 21,550, a break could force more short-sellers to cover, which is precisely the plan as they cannot afford to let Moody's downgrade to cause global investors to dump US assets.
Key support is at 21,000. If NQ could trade sideways above 21,000 in the next 1 to 2 days we could see other buyers coming in and cause a break above 21,550 and catapult NQ up to 22,000 area.
Another choppy sideways market action on Thursday. Friday could be the same. These sideways market action is a setup for big moves, up or down, likely not until next week as Friday tends to be choppy sideways.
Key intraday support for NQ on Friday will be at 21,350, a break could trigger some selling, with first support at 21,100 then lower support 21,000.
A very narrow range day for NQ on Wednesday, setting up for another trend up day on Thursday or a pullback day now that NQ is bumping into strong resistance and an overbought condition on the daily chart
Key intraday support for NQ on Thursday will be at 21,300. A break implies a pullback down to 21,000 support..
Trump decision to temporarily paused high tariff on China was an excure to launch massive buy program to forced the short to cover, thus halting market meltdown.
This bullishness is likely just temporarily as there is really no tariff deal, and the negative impact of Trump tariff will soon manifest itself, and economic shock and market sell-off will resume.
How soo will the selling resume, it is difficult to say. If short-covering continues we could see massive rally first before selling off.
For NQ key price level is now 21,000, bullish above, bearisg below it. If there is a pause before a break above 21,000 we could see NQ dropping down to 20,500 area and then break above 21,000.
NQ would need to break below 19,500 to trigger massive selling. For the current rally to stay intact NQ must stay above 20,500 on any pullback.
The stock market has rallied sharply in overnight trading as the US is using the tariff meeting with China to push the stock market up,
NQ is now trading at the lower resistance band 20,500-21,000. Without substantial result from the tariff talk the stock could sell-off hard. NQ would need to break above 21,000 to change the trend from down to up on the daily chart.
Key resistance for Nq on Monday will be at 20,500, bullish above and bearish below it.
Even with massive market manipulation by the Trump team, a combination of Tariff deal with the UK and massive buy program late on Wednesday the market failed to breakk above resistance on Thursday even with a huge gap-up open.
Friday may just be a sideways market action with key resistance at 20,500 and key support at 20,000. For NQ it may just trade within the price zone 20,000-20,500. Selling may have to wait until next week.
NQ would need massive buy programs to push it higher than 20,500.
Now that the FOMC meeting for May is out of the way market participants can make their decision. It seems that the market has rallied in overnight trading and if the rally can continue into the open on Thursday we could see a trending up day starting with a gap-up open.
If it is going top be a trending up day the next upside resistance zone is between 20,500 to 21,000. Whether or not it take one day or two days to get there we just have to wait and see. NQ would have to drop back below 19, 200 to turn bearish
For now, key support is 19,200-19,400 and key resistance is 20,500-21,000.
A very narrow range choppy price action for NQ on Monday as traders and investors wait for the Fed policy announcement on Wednesday.
Tuesday could be similar to Monday price action as market participants wait for the Fed policy announcement.
Key intraday support is at 20,000, a break below target 19,675. Staying above implies a rally back up to Friday swing high.
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