Trade Guideline for Tuesday

I will use 2350 as my Line-in-the-sand for Tuesday.

• With opening price action above 2350, I will be looking for price to rally in the morning to test Monday high (lower-high or Higher-high) before reversing back down.
• With opening price action below 2350, I will look for the market to trend down. 

Trade Guideline For Monday (Nasdaq NQ)

After a trending up day last Friday, I will be looking for a non-trending choppy Monday, and for the market to do the following:


1. Trend up in the morning then reversed back down in the afternoon. 
Resistance Levels and upside Targets are:
(a) 2355,
(b) 2365,
(c) 2375 (Strong Resistance)

2. Trend down in the morning then reversed back up in the afternoon. 
Support Levels and Targets to the downside are:
(a) 2340 - FT Pivot
(b) 2335,
(c) 2320 - Breakout Level (Strong Support)

My Line-in-the-Sand / Inflection Points is 2345

Guideline for Friday

For Friday, I will use 2320 as Line-in-the-Sand.

• Above 2320 I will be looking for the NQ to continue its retracement mode up to 2340-2345 area.
• Below 2320, looking for price to decline down to 2305, then 2395. 

Guideline for Thursday

I will use 2305 as Line-in-the-Sand for Thursday. 

• Above 2305, looking for retracement with first resistance at 2325, second resistance at 2340-2345
• Below 2305, looking for more decline, with first support at 2395, then 2380-2385. 

Wednesday's Trade Guideline

Tuesday was a one directional bearish trend day with a close near the day low. The last 2 pullbacks were 120 points and 100 points for NQ.

• 100 points decline would target 2300 area, and 
• 120 points pullback would target 2280 area.

For Wednesday, my Line-in-the-Sand is 2320.

• Above 2320, I will be looking for the market to retrace Tuesday's trend targeting 2340-2345.
• Above 2345, next target up is a test of Tuesday's high.

• Below 2320, I will be looking for price to continue down to 2295-2300.
• Below 2295, next target down is 2285

Trade Guideline for tuesday

The market is down quite substantially from last Friday's closing price in electronic trading on Monday. What the Fed's PPT decides to do come Tuesday morning would determine whether the market would sell-off (bearish day) or rally back up (bullish day).

My key Line-in-the-Sand for Tuesday is 2365 area for NQ.

• Above 2365 I will look for rally targeting first resistance at 2384, 
• Above 2384, I will be looking for price to go up to test the recent high.
• Below 2365, look for more decline down to the next set of support zone 2330-2335 area

Consolidation Thursday

Thursday was a consolidation day. I will use 2400 on NQ as Line-in-the-Sand on Friday. If the current consolidation is complete, price would break and stay above 2400 and then trend up targeting 2425-2435 zone.

• Below 2400, I will look for price to drop down to 2384 support and a potential buy zone. 
• If 2384 support does not hold, the next supports are 2378, then 2372.

ES Line-in-the-Sand is 1335-1336. 

• Above 1335-1336 target above Thursday's high 
• Below 1335-1336 target first support at 2329-2330

Bulls are still in control.

Consolidation Monday

Market consolidated inside a very narrow range on Monday following a breakout day on Friday.  Tuesday would either be more consolidation or another trending up day as short-covering continues, and the bulls continues to prevail.

I will use 2384 as key Line-in-the-Sand on Tuesday. 
Above 2384, implies a potential trending-up day.
Below 2384 implies more choppy consolidation day.

Trade Guideline For Monday

Following a breakout day on Friday, I will be looking for the uptrend to continue on Monday, as long as pullbacks can stay above breakout level 2365.

I am looking for a pullback entry at any of the following levels:
a) at FT Pivot 2370,
b) at Friday's breakout level 2365.

Failed Breakdown Thursday

Gap-opened below trading range low on Thursday failed, and the market promptly reversed back up through the broken trading range low, through FT Pivot to close the gap and test the upper trading range.

Nasdaq (NQ) failed to breakout above the range high. Similar price action for ES (e-mini S&P 500)

For Friday, the market either breakout above the high and trend up all day (short-covering) as the short sellers panic and cover ahead of the weekend, or, the market could continue to consolidate and test the range low again, or break below it.

Either way, I will use 2360 again for my key Line-in-the-Sand, 
2350  as trading range support, and 
2365 as trading range resistance

Trading Guideline For Thursday

Wednesday was a consolidation day following a steady trending up day on Tuesday. If consolidation is complete, I would be looking for a breakout above the high on Thursday.

Failure to successfully breaking out above the high would imply more consolidation. I will use 2359.25 FT Pivot Level for key Line-in-the-Sand on Thursday, bullish above, bearish below.

Breakout Monday

Market broke out above consolidation range on Monday with end of day pullback down. Depending on the opening price, for Tuesday I will be looking for either a morning pullback down to test break out level at 2230-2335 or re-test of Monday swing high.

I will use FT Pivot Level 2347.25 as Key Line-in-the-Sand for bullish-bearish bias

Guideline for Friday

Employment report, which has the potential to move the market quite substantially, will be released before the market opens on Friday. The opening price will be a key level to watch for in the morning. 

A gap-up above Thursday's high can cause a trending-up day targeting 2345 - 2355 area. A gap-down below FT Pivot would imply the trend is likely down.

I will use the FT Pivot 2314.50 as key Line-in-the-Sand, bullish above, bearish below.

Trade Guideline for thursday

As expected, Wednesday was a flat consolidation day, following a nice trending up day on Tuesday.

For Thursday however, if consolidation is complete, we should see a break above the consolidation high, and then trend up on short-covering rally.

If the market is not ready to trend up, it could breakout above current consolidation high and then reverse back down, or breakdown below consolidation low to retrace percentage of the entire range from Monday's low..

Key support is FT Pivot.

Trading Guideline for Wednesday

End of day rally on Tuesday failed to break above morning high as profit-taking activities took price back down as it attempted to take off to higher high.

It is possible that wave 5 up may still be in the card for Wednesday. If so, I will be looking for early morning rally to higher high above Tuesday's high that should be followed by an abc correction or reversal back down.

Trending Gap: Tuesday's Recap

Tuesday's gap-up opening above Monday's high is called by many names. . Elliott Wave traders called it wave 3 gap. Technical traders called it breakaway or run-away gap. Market Profile called this type of opening the Open-Drive Day.

Regardless of what it is called, this type of opening will cause a one directional trending market, in the direction of the gap, that is the market will trend in one direction all day long, with shallow lunch retracement and shallow end of day profit-taking counter-move.

This type of open causes a fast trending move in the direction of the gap as it cleanse stop-losses of traders caught on the wrong side of the gap. It is akin to a race horse as the gate opens and the race starts.