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.
On Friday, NQ rallied into the bottom later of strong resistance zone on the daily and weekly chart, the area between 20,500 to 21,000. This resistance price zone is very strong, NQ may need to pullback down from it before attempting to break through.
This resistance zone may be where the current rally stop and the next sell-off begin. Trump tariff war is probing to be very costly to american companies. As their earning begin to drop sharply their stock price would follow.
Key intraday support is at 20,000. A break below could tank NQ down to 19,680. If that does not hold, next support is at 19,200.
A negative GDP reading, implying economic contraction, released before the open on Wednesday caused massive sell-off before the open causing a big opening gap down. However, the opening gap was only down to key support.
The market sell-off turned into buying frenzy as investors are betting that the Fed may have to cut interest rate in May. Buyer came in and forced the shorts to cover resulting in a big rally from the opening low.
NQ daily chart pattern is bullish, and could rally 1,000 in a day or two, up to the next resistance at 20,800-21,000.
NQ continued its slow choppy rally on Tuesday forcing short-sellers to slowly cover. As long as NQ remains above 19,200 the shorts will continue to be under pressure.
Key intraday price level for NQ on Wednesday is at 19,600, bullish above it and choppy below it.
Another sideways trading pattern for NQ on Monday. With NQ remaining above 19,200, previous resistance now turned support, as long as NQ remains above 19,200, there is a strong possibility NQ is going to 20,500, the next resistance,
However, with the intraday time frame and the 60-minute time-fame in overbought condition we could see more consolidation on Tuesday, unless of course NQ can push higher and then trigger another round of short-covering.
Key intraday price level for NQ on Tuesday will be at 19,600, bullish above it, bearish below it.
A small up trending day for NQ on Friday with the close above 19,200 key support level on the daily chart.
Technical pattern on the daily chart and weekly chart is very bullish. As such, as long as Trump does not say stupid about tariff we should see a bullish up-trending day on Monday. The next resistance is at 20,500.
Key intraday support to keep the up-trending day in play is 19,450. NQ must stay above 19,450. A break below that implies sideways day, with ;lower support at 19,200
A huge non-stop rally for NQ on Thursday. The rally continues into the overnight globex trading session. Key price level to watch on Friday will be 19,400, bullish above it and bearish below it.
With stop-loss congregating just above 19,400, if the shorts covers we could see very sharp rally on Friday if NQ could stay above 19,400 and then pushes higher.
If NQ is not able to hold above 19,400, we could see a sharp pullback down to re-test 19,200 broken resistance, now support or lower
A large gap-up open for the stock market on Wednesday but it did not hold up as the market sold off hard with NQ closing way below the gap-open. Key resistance is now 19,200 and that would serve as strong resistance going forward.
On the intraday basis on Thursday we could see NQ dropping down to 18,450 support, if that support level holds, we can see NQ rallying back up.
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