Thursday, August 25, 2011

Trade Guideline for Friday (NQ)

Another narrow-range consolidation day on Thursday with the close right near key support/resistance level. The Jackson Hole meeting of central bankers is going to dominate the news on Friday.

What the Fed is going to hint would be key for Friday and next week. many are expecting the Fed to either announce QE3 or OT2, without the announcement of either program the market may sell-off.

Key level on Thursday is 2110.
  • Above implies more rally to first resistance 2130, then 2150-2160. Above 2160 intense short-covering can take price all the way to 2180-2200.
  • Below 2110 the next support is 2100, 2080 then 2040.