Trade Guideline For Wednesday (Nasdaq NQ)

A large gap-up with a close near the high of the day implies the shorts capitulated into the close. If there is going to be a follow through buying on Wednesday, the market should stay above Tuesday's close. A break below the close implies it is going into consolidation or reversal down.

I will use 2375 as Line-in-the-Sand.

• Above 2375 implies NQ is going higher to 2390 then 2405
• Below 2375 the market is going to decline down to 2360 then 2345

Trade Guideline for Tuesday (NQ)

For Tuesday I am anticipating a choppy market with average-size range (25 points + -  for NQ), 2335 as key Line-in-the-Sand:

• Bullish above targeting a rally up to one of the following resistance levels, 2345, 2355, 2365
• Bearish below targeting one of the following support levels, 2330, 2320, 2310

Trade Guideline for Thursday

As anticipated Wednesday was a reversal day, with the lows made in the overnight Globex session. I will use 2310 as key Line in the Sand for Thursday.

• Above 2310 I will look for a second up-day, targeting 2330 or 2340
• Below 2310 implies the market is ready to take out the low made during Tuesday night globex session. If so, there is a good possibility of a fast liquidation decline as stop-loss for the longs gets hit, possible downside targets are 2365, then 2340

Trade Guideline For Wednesday (Nasdaq NQ)

Tuesday was a third consecutive down days, hence Wednesday is likely a reversal-up day. If so, price should open gap-down or trend down in the morning then find support and reverse up to close at or near the high of the day.

Key level to watch for is the opening price. Target down are 2390 to 2380. On a very bearish day the next downside targets are 2360 then 2350.

Trade Guideline for Tuesday (NQ)

Monday was a second down-day on the daily chart. For Tuesday I will use 2310 as key Line-in-the-Sand

• If there is a follow-through decline on Tuesday price should drop and tank below 2310. If so the next downside target is 2300 then 2290.
• However, above 2310 implies the market may trigger a short-covering rally targeting 2340 with 2330 as potential resistance level that can cause a pullback.

Trade Guideline For Monday (Nasdaq NQ)

Following a 3-day rally, NQ close in a negative territory on Friday. Should there be a follow-through to the downside on Monday, on any rally, price should stay below key resistance level of 2360.

• If so, it should break below key support level of 2335, then below Wednesday's swing low.
• Should price breaks above2360, it can trigger a short-covering rally targeting 2385 to 2395.

Trade Guideline for Friday (NQ)

Thursday was the third up days in a row, hence there is a good chance Friday would be an up in the morning then close down at the end of the day.

Key will be the opening price action in relation to key price level of 2370.

• Opening price action above 2370 implies NQ wants to run up in the morning to 2375, 2385 or 2395 before reversing back down near the low.
• Opening price action below 2370 implies that it may wants to run down in the morning to 2350 or 2335 before reversing back up.

Trade Guideline For Wednesday (Nasdaq NQ)

NQ found support at Tuesday's 2318 low to close near the high of the day --> a reversal day. I will use the closing price of 2338.50 as Wednesday's Line-in-the-Sand.

• Above the close implies a bullish day targeting 2365, then 2375 area.
• Below the close implies bearish day, targeting test of Tuesday's low of 2318, then 2292

Trade Guideline For Monday (Nasdaq NQ)

Friday was a one-directional down trending day, closing at the low of the day. I will use 2382 as my key inflection point for Monday.

• Above 2382 implies Friday's downtrend has ended and hence a larger pullback or reversal up is occurring, targeting 2392 then 2404.
• Below 2382 implies downtrend is still in progress, targeting 2358, then 2340 

Trade Guideline for Thursday

Wednesday was a wide-range day albeit non-trending type of day, closing near the middle of the range. Unless price breaks out of the range it is highly likely Thursday be a narrow-range day.

I will use 2396 as key Line-in-the-Sand for Thursday.

• Above target a move back up to test Wednesday's high
• Below target a test of Wednesday's low. A break below Wednesday's low can take the market down to 2360-2365 area

Trade Guideline For Wednesday (Nasdaq NQ)

2398 is my key support/resistance level for Wednesday.

• I am looking for the rally to continue to higher-high as long as price can stay above 2398, targeting a break above 2415 swing high, if a break triggers short-covering rally NQ can shoot up to 2425 area.
• Below 2398 is bearish targeting 2388, then 2374.

Trade Guideline for Tuesday (NQ)

Monday was another non-trending day. Without any significant event to knock the market off-balance the non-trending pattern should continue.

For Tuesday I will use 2386 as key Line-in-the-Sand.

• Above 2386 target a move up to 2400, if that breaks then next upside target is 2410
• Below 2386 target a move down to 2375, if that breaks then next downside target is 2365

Trade Guideline For Monday (Nasdaq NQ)

NQ seems to be oscillating wildly between 2360 and 2410 trading range. The wild swing non-trending price should continue to persist inside the range. It needs to clearly break out of that range to trigger a trending one directional trend type of day.

For Monday I will use 2385 as the mid-range.

• Bullish above targeting 2410
• Bearish below targeting 2360

Trade Guideline for Friday (NQ)

Bearish close on Thursday, and a fourth consecutive down days. I will use 2381 as Line-in-the-Sand for Friday.

• Below 2381 I am looking for NQ to decline down to 2357 area. If market internals are extreme I will look for a decline down to 2340 area before finding some support.
• Above 2381 I will look for NQ to rally up to 2402. If market internals are extreme bullish, I will look for it to rally up to 2410.

Trade Guideline for Thursday

Wednesday's price action was as I expected per my prior blog, downtrend in the morning then reversed up after breaking below prior day low to close near the open.

On a daily chart we have a doji candlestick, implies the market is in balance. The next day price action in relation to the closing price zone is key for determining the next day trend bias.

I will use 2388 as my key inflection point for Thursday, bullish bias above, bearish bias below.

• Upside Targets are 2395, 2402, 2410
• Downside Target are 2380, 2375, 2365

Trade Guideline For Wednesday (Nasdaq NQ)

Tuesday was another follow-through down day following a reversal day (Monday) on the daily chart. For Wednesday we may get another down day (3rd day down) or a reversal-up day with morning decline that get reversed and close in a positive territory at the end of the day.

I will use 2390 as key Line-in-the-Sand for Wednesday.

• Long above targeting 2400 then 2410
• Short below targeting 2375 then 2360

Trade Guideline for Tuesday (NQ)

Monday was a reversal day on a daily chart. If there is a follow-through to the downside on Tuesday NQ should break below Monday's swing low down to one of the support levels, before reversing back up (as long as it is not an open-drive down).


I will use 2404 as key Support/Resistance level for Tuesday.

• Below 2404 I will look for NQ to break below Monday's low, down to 2380 area. If market internals gets really bearish, the next support below 2380 is 2360.
• Above 2404, I will look for NQ to rally up to 2420.