Trade Guideline For Friday (NQ)

Nasdaq consolidated just below key level on Thursday. 2535 is still key level for Friday.

• Bullish above 2535, but it would need a sustained break above 2545 to trigger a short-covering rally, targeting 2580.
• Below 2535 implies it is going to continue to consolidate

Trade Guideline For Thursday For NQ

As expected, below key level, NQ continued to consolidate on Wednesday, closing near key level for Thursday, 2535.

• Above 2535 implies NQ should continue to be on the bullish side, testing Tuesday swing high.
• Below 2535 implies it is still; in consolidation mode. 

European debt and credit crisis is going to continue to drag the markets down. European bank  run is going to continue to put downward pressure on the Euro and upward pressure on the US$.

Trade Guideline For Wednesday (NQ)

Nasdaq traded sideways on Tuesday, consolidating prior to clearly break out above prior swing high, currently displaying a bullish "CUP" and handle pattern on the 60-minute chart.

• As long as it can stay above key level, 2535, the Cup pattern is still intact, a trending breakout is imminent, targeting 2590 - 2600.
• Breaking below 2535 implies more consolidation.

Massive Money Printing to bail out banks and countries is now imminent as banks and countries in Europe gets closer and closer to a total collapse.

Money Printing To The Max

http://www.goldmoney.com/gold-research/alasdair-macleod/money-printing-to-the-max.html?gmrefcode=dollarc

Trade Guideline For Tuesday

Market traded sideways last Friday ahead of the long weekend as most traders were gone from their office, setting up a potential trending move, up or down on Tuesday, depending on where it trades in relation to key support-resistance level.

For Tuesday, key support-resistance level is 2525.

• Above 2525 has the potential to trigger a short-covering rally.
• Below 2525 may trigger a sharp sell-off to re-test  last week Monday's swing low.

Trade Guideline For friday (NQ)

A choppy non-trending day on Thursday, as NQ remained inside prior day trading range. The 60-min chart is currently showing a bullish triangle, and a break above Thursday's swing high could trigger a short-covering rally, targeting 2595-2600.

Bellow Thursday's low implies a failed 60-minute triangle pattern, first target down is 2480. If 2480 does not hold as support, it could lead to a fast liquidation decline.

Trading Guideline For Wednesday (NQ)

Rally continued in the morning but was reversed in the afternoon, then closed in the middle of the day range, forming a doji candlestick pattern on the daily chart. NQ needs to breakout and stay out of the range to trend again, and failure to breakout and stay out implies a choppy consolidation day.

• Middle range = 2540
• Support = 2520
• Resistance = 2560

Trade Guideline For Tuesday (NQ)

A sharp short-covering rally on Monday, a pullback day on the daily chart, closing at the day high. This type of day is usually followed by another rally day as long as pullback remains above key level.

Key Level for Tuesday is  2520

• Above 2520 implies short-covering rally should continue.
• Below 2520 implies a re-test of Monday's swing low.

Trade Guideline For Monday (NQ)

As expected, Friday was another wide-range down-trending day, and it was precise due to the lack of support until 2420 area. Nasdaq could continue to decline until it hit some support, with or without any pullback. 

Key Level for Monday is 2490.

• Below 2490 implies it is still in a fast mode down, next target 2420
• Above 2490 implies it is going into a pullback / consolidation mode, targeting 2510-2520.

Trade Guideline For Friday

Nasdaq failed to break above key 2570 level on Thursday, and as expected liquidated into the close, resulting in a wide-range down-trending day. I am looking for a similar type of day for Friday, unless it can rally and stay above key level.

For Friday, key level is 2525.

• Pullback that fail to break and stay above 2525 implies the fast down-trending mode is still in progress and implies another liquidation wide-range day, with next major support at 2420 area. Fibonacci projection targets 1.618 is 2478 and 2.00 is 2414. Fibonacci levels are levels that we would need to watch closely as they can cause a bounce or reversal.
• Pullback that breaks and stay above 2525 implies a pause in the fast down-trending move, implies it is going into consolidation, with upside target 2540-2545. A clear break above 2545 could trigger a short-covering rally.

Trade Guideline For Thursday ((NQ)

Nasdaq opened gap-up above key level 2585 on Wednesday but failed to rally, then quickly broke below 2585 and 2570, closing near the day low, below key level for Thursday.

Key level for Thursday is 2570.

• Failure to rally above 2570 on Thursday implies it is still in a fast down-trending mode with the next major support at 2420. I am not expecting NQ to decline to that level in one day, unless of course we get a crash.
• Above 2570 implies it is going into a consolidation mode, with 2585 as upside target.

8 Shocking New Forecast for 2012 and Beyond by Martin D Weiss

Link: http://www.moneyandmarkets.com/transcript-8-shocking-new-forecasts-for-2012-and-beyond-49635

Trade Guideline For Wednesday

For the third consecutive day, morning rallies were reversed. However, on Tuesday the closing price was below morning low and below prior trading range low, a setup for a gap-down opening that is to be followed by a wide-range liquidation decline, but it is very highly probable the Plunge Protection Team will be supporting any sell-off.

Key level for Wednesday is 2585 area.

• A sustained break below 2585 could trigger a liquidation decline, particularly if the double-bottom support 2570 (DB with March 6 swing low) does not hold.
• Above 2585 implies it is still in consolidation mode.

Trade Guideline For Tuesday (NQ)

Another consolidation day, below prior trading range. Nasdaq's 60-min chart is displaying a very clear inverted cup, a bearish pattern, if followed by a sustained break below support, would lead to a fast and large liquidation decline.

Key Support = 2585

Key Resistance 2605

Trade Guideline For Monday (NQ)

NQ stayed inside a trading range on Friday after failed morning breakout attempts. 

Key level to watch for on Monday is 2620, but it needs a sustained breakout of the 2600 - 2540 trading range to trigger a fast trending mode.

On a daily chart, the last 4 days looks like a sideways consolidation setup for fast and large liquidation day or days. However, a sustained break above 2640 would imply that it is still in a pullback (up) mode, targeting 2700 resistance.

Ben Davies at KWN reported that 'the European default process is about to become disorderly.  Bank capital is scarce and fully endangered as good collateral is scarce. The credit transmission will be in crash mode, ECB will react with 3rd LTRO, and the Fed will power up the US Dollar SWAP Lines".

Spain's "Indignados (Indignants)" demonstrate at the Puerta del Sol square in the capital Madrid on May 12, 2012 to decry economic injustice and the government’s tough austerity policies.

Trade Guideline For Friday (NQ)

A very narrow-range trading day on Thursday, the third consecutive consolidation day. It is a set-up for a wide-range trending day, up or down depending on the breakout direction.

Key Resistance = 2635

Key Support: = 2605

A sustained break out of the range is likely to trigger a fast trending move in the direction of the break.

• Upside breakout target = 2660 - 2680
• Downside breakout target = 2570 - 2580

Trade Guideline For Thursday (NQ)

Another sideways consolidation day on Wednesday closing right in the middle of a narrow trading range between 2610 support and 2635 resistance.

For Thursday, a sustained break out of the range could cause a fast trending move out of the range.

• Above 2635 implies potential fast short-covering rally.
• Below 2610 implies liquidation decline down.

Trading Guideline For Wednesday

Nasdaq opened gap-down and liquidated in the morning on Tuesday, but then reversed and trend up in the afternoon, closing near the day high, a pullback day in a fast down-trending market. 

A down-day on Wednesday is very bearish, implies the market is in a "crash" mode. What it will do on Wednesday will depend on where it trades in relation to its key level

Key level to watch on Wednesday is 2640.

• A sustained break above 2640 in the morning would imply a fast short-covering rally targeting 2670, likely a trending-up day with some profit-taking in the afternoon.
• However, failure to break above or a false breakout above 2640 would likely cause the market to pullback down to 2600. A sustained break below 2600 implies a re-test of Wednesday's swing low. 
• A sustained break below Wednesday's low, particularly if occurring in the morning, would likely cause another large and fast liquidation decline.

The loss of the pro-banker political parties in both Greece and France in their recent election could trigger another round of credit crunch that has the potential to crash markets world-wide.

Trade Guideline For Tuesday

Monday was a narrow-range consolidation day following last Friday's wide-range trending-down day.

Tuesday could either be another narrow-range consolidation day or a wide-range trending day. The key would be based on whether or not it can breakout of Monday's trading range and then stay out, or a falsebreak out of Monday's trading range.

• A sustained break above Monday's swing high could trigger a fast short-covering rally.
• A sustained break below Monday's swing low coul;d lead to another wide-range liquidation day.
• A false-breakout of the range would produce another narrow-range consoldiation day.

Trade Guideline For Monday

NQ gap-down and trend down all day on Friday, closing at the day low, implies buyers capitulated into the close. For Monday morning it can continue down as long as it stays above key level.

Key level For Monday is 2640.

• Above 2640 implies it is going into a pullback/consolidation mode, first target is 2655 area.
• Below 2640 implies it is going into another round of liquidation mode targeting 2600. If that does not hold then 2570.

Trading Guideline For Friday (NQ)

Thursday was a one-directional trending-down day, with the open near the day high and the close near the day low.

Depending on where NQ opens and trades in the early morning, it either tank down in the morning then rally in the afternoon, or rally in the morning up to resistance then trade sideways in a consolidation mode, trading between 2700 support and 2730 resistance. Asustrained break above 2730 could cause a fast short-covering rally.

Key Level for Friday is 2700.

• Below 2700 implies a fast downtrendin the morning, decline to supports, 2660 and 2630.
• Above 2700 implies it is going into a consolidation mode, targeting resistance 2725-2730.

Trading Guideline For Thursday (NQ)

Nasdaq NQ opened gap-down and then test 2700 support, but failed to break down below it, then reversed and slowly rally up to 2730 resistance. 

For Thursday Key Level is 2725.

• Above 2725 implies it is going to rally up to re-test Tuesday's swing high.
• Below 2725 implies NQ is going into a consolidation mode, likely trading between 2700 support and 2730 resistance.
• Only a sustained break out of the 2700-2730 trading range would cause a trending move in the direction of the break.

Trading Guideline For Wednesday (NQ)

With a sharp rally in the morning that was followed by a sharp decline in the afternoon, with the close near the open, a Gravestone Doji Candlestick Pattern was formed, potentially bearish for Wednesday unless the doji high is breached.

For Wednesday, Key level is 2730.

• Below 2730 implies a likely trending down move, targeting 2690 - 2700.
• Above 2730 implies a re-test of Tuesday's swing high.