A large gap-up opening for the US equity market on Monday with NQ opening over 300 points above Friday's close.
With the Fed expecting to cut inetrest rate by 0.25 basis point on Wednesday and a trade deal announcement between Trump (US) and Xi (China) on Thursday we could see massive short-covering rally this week, with normal upside target at 26,600, and higher if NQ overshoot to the upside.
Key support for NQ is now at 25,400, bullish above it, and bearish below it.
The equity market traded sideways on Friday . For NQ it opened above prior swing high and then traded and closed above the previous high, 25,355, now became ket support.
NQ has rallied almost 300 points in overnight trading. If the bullishness remains into the Monday open we should see the shorts getting forced to cover, which could lead to short-covering rally with the next upside target at 26,000.
A narrow range choppy upday for NQ on Thursday. The rally has continued into the overnight globex session which is likely to continue into the day on Friday.
Key price level to watch is previous swing high at around 25,395.
A break above is bullish as it is likely to trigger a short-covering activities especially if it can break and stay above it.
Below 25,395 we could see choppy sideways action. Support is at 25,000
NQ sold-off hard in the morning and into early afternoon on Wednesday. Late day profit-taking rally,pust NQ to close above 25,000, key intraday inflection price level, setting up a continual rally in the morning if NQ can stay above 25,000 dduring overnight trading session.
The general mood of the market was bearish on Wednesday with Crypto and precious metals trading down with the stock market.
We shall see what happens on Thursday, 25,000 remains key intraday inflection price level, bullish above it, bearish below it.
A very narrow range day for NQ on Tuesday, stuck between resistance 25,390 and support 24,000.. As long as NQ remains below 25,390 we could see more narrow range day or a sharp drop back down to 24,000 support.
Key intraday inflection price level remains at 25,275, bullish above, bearish below.
What was more exciting on Tuesday wa the takedown of gold and silver, vulnerable to sharp selloff because it was way overbought.
How long and how large the current pullback will be is difficult to say.
Gold 20-ma support on the daily chart is at around 4,000, which provided support on Tuesday overnight globex trading session.
4,000 is now key support for gold.
NQ opened with a gap-up above 25,000 key resistance on Monday. As such it triggered a short-covering rally that too NQ back up to its resent high,25,390.
The market looks bearish in overnight trading, with Bitcoin and other cryptos sellign off hard.. If the weakness continues into the open we could see sharp sell-off in the equity market.
Key price level for NQ is 25,275, bullish above and bearisg below it, with for support at 25,000.
After five days of choppy consolidation NQ looks ready to trend back up again. To do so NQ must break and stay above 25,000 in order to force the shorts to cover and to attract buyers.
Failure to stay above 25,000 is likely to trigger another round of selling with 24,000 as key support.
NQ failed to stay above 25,000 after trading above it soon after the open on Thursday which is bearish setting up for a bearish Friday.
Overnight on Thursday night NQ has sold off hard. Without any major market-moving news in the morning on Friday NQ is set to sell-off. If so the enxt support is at 24,000.
24,000 support may not hold. A break could cascade NQ down to the next support level, 22,300. NQ may not get there on Friday but it is possible.
When everything has sold-off on Thursday night, only gold is bullish.
NQ rallied all day after re-testing the low from Friday sell-off. The rally stopped below key resistance at 25,000.
On Wednesday we could see re-testing of 25,000 resistance. And if it starts to trade above it, short-sellers will have to start to cover, thus triggering a short-covering rally.
Failure to re-break back above 25,000 is bearish, an indication its trying to re-test support. A break of support is likely to trigger a huge decline as the next strong support is at 22,000, that is a 2,000 point drop to support.
Monday was a technical bounce from key support back up to resistance zone, round 25,000.
For Tuesday 25,000 will be key price level, a break above could trigger short-covering rally, but failure to break is an indication NQ is going back down to retest support at around 24,000.
Key resistance is 25,000 and key support is 24,000, with first minor support at 24,700
