Short-covering contained all week last week pushing the S&P 500, Nasday 100 and Russell into breakout mode, we could see a faster rally if they can stay above breakout mode.
The indices are in deep overbought zone on the daily chart. As such, once the short-covering is complete we could then see sharp reversal back down.
Key support for NQ is now at 26,300, for S&P 500 it is at 6,900 and for Russell it is at 2,700. Bullish above, bearish below.
The market rallied on Friday as a result of declining crude oil prices as market participants overwhelming believe that the middle east war is ending. However, the reality is different. The war is far from over and that crude oil price can spike back up at anytime.
The shooting is set to restart on Tuesday. What Trump decide can influence the market in a dramatic way and it is not possible to guess what that may be, however, key to market direction is the crude oil prices, WTI key price level for Monday will be at US$90,
Crude oil spiking above $90 will crash the market , below $90 could rally the market or just cause a sideways price action now that the equity market is already in extreme overbought on the daily chart..
Equity markets continued to rally on Tuesday and crude oil prices contused to sold-off on Tuesday pricing in a de-escalation of war between the american and Iranian.
If the situation continues on Wednesday we could see another rally in equity, although the equity market is already in deep overbought on the daily chart, and vulnerable to sharp sell-off.
NQ nest resistance is at 26,300.
Crude oil could continue to sell-off with WTI support level at 80 to 82.
Gold is pulling back down to support at 4,800, dropping from below strong resistance at 5,000.
Ahead of President Trump deal deadline with Iran, Tuesday evening, we could see crude oil price staying at elevated level which is bearish for the stock market.
With all major indices setting up a bullish pattern on the daily chart timeframe, as long as crude oil price does not spike, we could se a bullish day for the stock market on Monday.
A spike in crude oil price could cause the stock market to turn bearish.
Key resistance for NQ is 24,300, bullish above it, next resistance is at 24.800, and bearish below it.
President Donald Trump panicked on before the market opened on Monday as global market was set to crash as crude oil prices spikes because of his war ultimatum given to Iran.
He announce an extension to his 48 hours ultimatum and he collapse the crude oil price and the collapse was delayed,
Depending on what happended to crude oil price we could see a continual rally on Tuesday or a collapse if crude oil price spikes again.
Most major indices are at or near key support level, and could have a large bounce if Crude Oil price could continue to go lower
As the war between United States and Iran intensifies the financial markets will continue to get volatile. Financial market is selling off hard and crude oil is skyrocketing.
natural trend is pushing the markets down while the Us government is going to pump in as much liquidity to support the financial market, thus creating wild swing.
For NQ key support is 24,000. Should 24,000 be violated the next lower support is not until 22,400. At the current speed NQ could drop down to that support level in one day
NQ Continue to trade sideways inside a large trading range between 24,000 support and 26,400 resistance. Thats a 2,400 points trading range, with its price inflection level at 25,400., bullish above it, and bearish below it.
For Friday, intraday support is at 24,800, and intraday resistance at 25,100. A break out of the range could trigger a 300 to 400 points move out of the range.
NQ sold-off hard in the morning but then traded sideways the rest of the day. Depending on where it opens on Tuesday we could see a sideways range day or another sell-off day of NQ should break below Monday swing low and tank.
On the daily chart, resistance is at 25,100 and support is at 24,100, a 1,000 point trading range.
On the 5-minute intraday chart, key price inflection level is at 24,830, bullish above with upside target at 25,100
Bearish below it with first support at Monday swing low, 24,660..
NQ has been trading sieways for th last 5 trading days but looks ready to sell-off again on Monday
Ket support for NQ on Monday will be at 24,890. A break below will tank NQ down to the next support level at 24,550.
Overnight, the financial market looks bearish. If the bearish ness should continue into the open we are likely to see sell-off.
Watch 24,890 level, bearish below it bullish above it.
A sideways choppy market on Wednesday with NQ trending up in the morning and then trend down in the afternoon.
On the daily chart and the 60-minute chart, NQ looks bullish and could rally up to resistance at 25,400-25,500
For NQ to be bullish it has to stay above yey support is at 24,890. A clear break is an indication NQ is going back down to 24,000 support.
NQ Futures Chart
