A slightly bearish consolidation day for NQ on Thursday. It was a very choppy slow grinding down day.
Friday could also be a choppy consolidation day as well with key inflection price level at 21,300, First support is at 21,130 and first resistance at 21,450.
As long as there is no unexpected market-moving news before the open that knocks the market out of balance before the open, the above analysis remains valid.
A huge opening gap-up and trend up on Wednesday. Overnight NQ has continued to rally higher, setting a likely gap-up and trend-up in the morning but reverse at lunch or in the afternoon.
Resistance is at 21,550-21,600.
There is a potentially bullish setup on the daily chart that could trigger a further 700 to 1,000 point rally within a few days, and it could happen ahead of next week Monday Trump inauguration.
Key support is now at 21,300. Bullish above it and bearish below iy.
A bullish reversal day for NQ on Monday, starting with a gap-down open and then then rallied all day closing just below key intraday resistance, 21,000.
On Tuesday, if NQ could open with a gap-up above 21,000, and then able to stay above 21,000 we could see a big short-covering rally, that could propel NQ up to either 21,300 resistance and also higher to 21,600 resistance. Whether or not its needs one day to do it or needs two days, it is difficult to forecast.
Thus key inflection price level for NQ on Tuesday is 21,000, bullish above it, bearish below it.
Overnight, both the stock futures andthe crypo futures points to a bullish day on Tuesday. As long as there is no unexpected market moving new before the open, we should see a bullish Tuesday.
Trade guideline for Thursday is good for Friday
A sideways consolidation type of day for NQ on Wednesday following a large down day on Tuesday. Depending on where it trades in relation to key support, 21,300, we could either see another sideways day or a rally day or a down day.
NQ has several layer of supports, 21,300, then 21,000 and then finally 20,900. NQ would need to clearly break below 20,900 to cause a waterfall decline down to the next lower support, 20,000. Will the crash down to 20,000 happen on Thursday? it is not very likely due to those strong supports.
Staying above 21,000 would keep NQ in a neutral to bullish zone.
A large down day for NQ on Tuesday as the 10-year bond yield continue to spike higher. The yield seems poised to continue higher which is very bearish for the stock market.
As such there is a real possibility the stock market may crash in a big way, with NQ dropping over 1,000 intraday, be on a watch out.
On Thursday key support is at 21,300, a break is going to cause a sharp drop to 221,000 and key resistance at 21,600, a sustained break is likely to cause a sharp rally up to 21,900.
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A sideways intraday trading pattern for NQ on Monday, with opening gap-up above 21,650 resistance and then came back down to re-test it.
On Tuesday we could see trading sideways above 21,650, or if that level is broken to the downside, we could see NQ trading lower to the enxt support, 21,450.
Trading above Monday high could push NQ higher to 21,100 price level as the shorts are forced to cover.
A gap-up open and trend-up day for NQ on Friday. On Monday we could see another trend-up day if NQ can trade above key resistance, 21,550, or trade back down to support, 21,300 if it fails to trade and/or stay above 21,550.
If so we could see a sideways trading pattern oscillating between 21,550 resistance and 21,300 support.
A clear break below 21,300 support could cause a sharp drop, with the next support at 21,000
A sideways trading pattern for NQ on Thursday, with the low at strong support of 21,000. There is another layer of strong support at 20,900. NQ would need to clearly break below 20,900 to tank.
As long as NQ remains above 20,900 we are likely to see more sideways action as sellers and buyers causes the market to swing up and down in unpredictable way.
Tuesday low was at major support on the daily chart, the 50-day moving average. Overnight on Wednesday night NQ has rallied back up, indicating a bullish day on Thursday.
If so, NQ would have to stay above 21,300, key intraday inflection price level for NQ. As long as NQ remains above 21,300 on Thursday NQ would be in a bullish mode, rally target is 21,700.
Bearish below 21,300 with strong support at 20,900-21,000
