Trade Guideline For Friday

On Thursday, NQ opened with a gap-down below Wednesday's low and trend-down to August 24th swing low, forming a double-bottom, then consolidated the rest of the day. With Ben Bernanke set to give his speech at the Jackson Hole economic conference on friday morning, anything can happen, and it may or may not move the market.

Key level For Friday is 2755.

- Above 2755 implies more consolidation, with first resistance at 2750.

- Bearish below 2750, with first support at 2743. 

FT Pivot Levels
R1= 2767.25
FTP = 2758.75
S1 = 2745.75

Ben Bernanke is set to give his speech at the Jackson Hole economic conference on Friday morning, and it may or may not move the market.

Trade Guideline For Thursday

Another narrow-range consolidation day again on Wednesday. With most traders out of their office for the long labour day weekend, it may continue to stay inside the range until next week.

Upper range = 2790, Lower range = 2770

Trading range = 2770 - 2790

It would need a clear and sustained breakout of the range to trigger a trending move in the direction of the break. 

FT Pivot Levels

R1 = 2793.50

Pivot = 2782.50

S1 = 2774.25

Below is a QQQ (Nasdaq 100 tracking index ETF) weekly chart showing it is now at double-top

Trade Guideline For Wednesday

Another consolidation day on Tuesday, a continuation of the decline that started on Monday. If consolidation is complete, price should start to rally up on Wednesday, targeting a break above Monday's swing high before pulling back down.

Key level for Wednesday is 2780.
- Above 2780 is bullish, implies the next up-leg could commences at anytime, targeting a break above Monday's swing high before pulling back. A sustained break above reversal zone implies a trending up day.
- Below 2780 implies it is still in a consolidation / pullback mode, targeting a drop down to 2770, 2760.

FT Pivot Levels
R1 = 2792
FTP = 2781.50
S1 = 2772.50

Trade Guideline For Tuesday (NQ)

NQ traded sideways in a very narrow trading range on Monday, consolidating just below double-top on the daily chart. It is either consolidating just before breaking out above double-top on the daily chart, or a topping price action just before reversing back down. 

But whatever it may want to do next, only time will tell, key level for Tuesday is 2775.

-- Bullish above 2775, target a re-test of August 21 swing high, targeting a lower high or higher high.

-- But below 2775 implies consolidation is still in progress, next target down is 2760-2765. If that does not hold, next target down is a re-test of August 24 swing low.

FT Pivot Numbers

R1 = 2792.50

Pivot = 2784.50

S1 = 2775.00

Market Profile Number

UVA = 2789.50

POC = 2785.50

LVA = 2780.50

Below is a weekly chart showing SPY (S&P500 index ETF) currently trading just below its 2008 swing high, now acting as strong resistance.

Trade Guideline For Monday

Looks like Nasdaq may have completed an ABC zig zag retracement wave at the open on Friday morning, as it quickly rallied up to just below Wednesday's swing high before pulling back down at the end of the day on Friday, likely a wave 2 pullback.

If so, and once wave 2 has ended, price should quickly rally and rocket above Wednesday swing high (wave 3). A gap-up and trend-up on Monday would be a good indication of wave 3 in progress. ES is also displaying a similar pattern.

Key Level For Monday is 2770 area.

-- Bullish above, targeting a break above Wednesday's swing high, then Tuesday's swing high.

-- Below 2770 implies it is going back down to re-test Friday's swing low.

FT Pivot Levels

R1 = 2790

Pivot = 2775.25

S1 = 2755.25

Market Profile Numbers

UVA = 2784.50

POC = 2777.50

LVA = 2767.50

Below is a QQQ 5-minute chart, a nasdaq 100 tracking index ETF.

Trade Guideline for Friday

Another sideways consolidation day on Thursday trading between 2755 support and 2780. 

For Friday, trading above 2780 is bullish, targeting a move up to test of Tuesday swing high,

Trading below 2755 is bearish, targeting 2743 support.

FT Pivot Numbers
R1 = 2784.25
FT Pivot = 2769.25
S1 = 2745.75

Market profile Numbers
Upper VA = 2772
POC = 2763
Lower VA = 2760

Trade Guideline For Thursday

A consolidation day on Wednesday with an early morning false-breakout to the downside, then closing in the middle of Tuesday's trading range. Expecting more consolidation on Thursday if the open is inside prior day range.

Key Level For Thursday is 2775

-- Bullish above, target 2800 resistance.

-- Bearish below, target a re-test of Tuesday's swing low.

Jackson hole economic summit coming up soon.

 

Trade Guideline For Wednesday

A reversal day on Tuesday, with the gap-up opening and a quick run-up to resistance before quickly reversing back down and closing not far from the day swing low. This type of price action often lead to a 2 to 4 down days, unless the reversal day get negated by a re-break above the high.

Key level for Wednesday is 2775.

-- Above 2775 implies a potential rally up to 2785. A clear and sustained break above 2785 target a re-test  of Tuesday's swing high.

-- Below 2775 implies a potential decline down to 2765 support. A sustained break below 2765 could trigger another trending down move, with support at 2743, then 2722

FT Pivot Numbers
R1 = 2797.25
FT Pivot = 2779.25
S1 = 2756.25

Market Profile Numbers
Upper VA = 2787
POC = 2773
Lower VA = 2762

Trade Guideline For Tuesday

Another consolidation day on Monday, with price action staying inside  2765 support and 2786 resistance. Unless it can breakout of the range, we can expect another consolidation day again on Tuesday. 

A clear and sustained breakout of the range, however, would trigger a trending move in the direction of the break.

Trading range = 2765 - 2786 (2765 Support, 2786 Resistance)

FT Pivot Numbers

R1 = 2787.25

P = 2777

S1 = 2770

Market Profile Numbers

UVA = 2782

POC = 2780

LVA = 2772

Trade Guideline For Monday

A choppy up-trending day for NQ on Friday as it nears a double-top with April swing high which is at about 2786 area. 

As price approaches that key double-top level, the question we need to ask ourselves is what happen as NQ trades near that DT.

1. Will it breaks and rocket higher?

2. Will it falsebreak to higher-high and then collapse? or

3. Will it pullback before the break?

In reality, no one could know for sure, hence it is best for us to monitor price action daily, on an intra-day basis. 

For Monday, key level to watch is 2773 area.

-- Bullish bias above target up is 2786 area. A sustained break could cause a massive short-covering rally.

-- Bearish below, implies consolidation, with first target down to 2765, then 2743.

Pivot Numbers:

R1 = 2783.25

FT Pivot = 2773.25

S1 = 2766

Market Profile Numbers:

Upper VA = 2777

POC = 2775

Lower VA = 2770

Here is an NQ daily chart showing potential future price path, a reference guide.

Trade Guideline For Friday

A gap-up and trend-up day on Thursday with some profit-taking pullback at the end of the day. 

Key Level for Friday is 2765.

-- Above 2765 implies another trending up move with first target up above Thursday high. A sustained break above Thursday swing high target a potential quick rally up to 2800.

-- Below 2765 implies NQ is in consolidation/pullback mode target 2755-2760.  A clear break below target re-test of breakout level 2743.

FT Pivot = 2758.50,
R1 = 2779,
S1 = 2743.25

Value Area High = 2773.75
Point of Control = 2763.75
Value Area Low = 2754.75

Interesting article: Economic collapse is inevitable

http://www.crisishq.com/why-prepare/economic-collapse-inevitable/

Trade Guideline For Thursday

A consolidation day on Wednesday with the early morning re-test of 2725 broken resistance now-support. NQ traded sideways inside prior day trading range.

Support for Thursday is 2725 with resistance at 2743.

-- Potential breakout above 2743, with first upside target at 2750.

-- Potential breakdown below 2725, with first target down of 2700

-- Continuing consolidation inside 2725 - 2743 range.

Trade Guideline For Wednesday

Key level For Wednesday is 2730.
-- Bullish above, target test of Tuesday's high. If higher high target 2750 area.
-- Below 2730 is bearish, target 2715

Upper VA = 2739.75
POC = 2731.75
Lower VA = 2729.25

R1 = 2739.50
FT Pivot = 2730.25
S1 = 2717.25

Trade Guideline For Tuesday

On Monday, NQ continued to trade sideways inside a narrow trading range between 2700 support and 2725 resistance until the end of the day when NQ was finally able to breakout above 2525 resistance.

-- For Tuesday, a continual push above 2725 resistance should trigger another round of short-covering rally, with first target at 2750. 

-- Breaking back below 2715 implies it is in a pullback mode targeting 2720 support. As long as 2720 support hold, it is still in a position to breakout above 2725 resistance. A break below 2715 would imply it is either back in consolidation mode or potential reversal down. 

Spanish town in hock as banks cope with $250 billion in bad loan.

http://www.pressconnects.com/usatoday/article/56951670?odyssey=mod%7Cnewswell%7Ctext%7CFRONTPAGE%7Cp

Trade Guideline For Monday

As expected, NQ opened and trend-down to 2700 support in the Morning on Friday before reversing back up and rallied up to just below 2725 resistance.  

NQ is currently stuck inside a narrow trading range between 2700 support and 2725 resistance ( 2700-2725 range). A breakout of the range could trigger a fast trending move in the direction of the break.

For Monday key level is still 2715.

-- Above 2715 is bullish but 2725 has been acting as a very strong resistance. It needs a clear and sustained break above 2725 to trigger another rounds of short-covering rally, with 2750 as the next upside target.

-- Below 2715 implies a bearish bias, with strong support at 2700. A clear and sustained break below 2700 could start to run-over trailing stoploss, triggering liquidation decline, with the next support at 2680 and then 2655.

Upper Value Area = 2715.25

POC = 2712.25

Lower Value Area = 2706.25

Trade Guideline For Friday

Another sideways consolidation day on Thursday. Friday key level is 2715. 

Opening price action below 2715 implies a likely trend down in the morning with afternoon rally. Above 2715 implies uptrend in the morning with next upside target of 2750.

Resistance 2725, 2750
Support 2700, 2680, 2655

Upper VA  = 2720.25
POC = 2715.25
Lower VA = 2711.25

Trade Guideline For Thursday

With NQ opening inside prior day range, as expected, it traded sideways inside a narrow trading range, hence a consolidation day. Wednesday's range was so small that we could see a trending breakout move out of the range 2700 - 2715 on Thursday.

-- A breakout above 2715 implies a trending move up, first target is a break above Tuesday's swing high. A sustained break above Tuesday swing high should trigger a short-covering, upside target is 2750 area, A falsebreak can lead to a fast reversal..

-- A break below 2700 should take price down to supports 2680, 2655.

 .
Spain and Italy's credit rating cut by DBRS as debt crisis intensifies.

Another trending-up day on Tuesday, with late day profit-taking decline with a close below key level.

Key level for Wednesday is 2715.
-- Above 2715 implies next up-leg is likely in progress, target up is 2750 double-top resistance. Failure to break resistance could cause a fast trend reversal down. A Falsebreak above resistance could also lead to fast reversal down. A sustained break above resistance however, could cause another round of short-covering.
-- Below 2715 implies consolidation, first support is 2700, then 2690.

Trade Guideline For Tuesday

On Monday, NQ opened with a gap-up above Friday's high, and then continued to trend up to 2700 resistance area before stalling. End of day profit-taking took NQ down to below key level. 

I am looking for more consolidation below key level, and trending up above key level..

Key level For Tuesday is 2695.

- Below 2695 implies it is still in a pullback mode, with downside target at 2675. A clear break below 2675 could starts to run-over trailing stop-loss which can take price down to 2655. Support levels are 2681, 2675, 2655, 2645

- Above 2695 implies pullback has ended and the next trending up-leg is in progress targeting 2725 which can overshoot up to 2750. Resistance level above 2700 area 2725, then 2750

On Friday S&P cut rating of 15 Italian Banks

Trade Guideline For Monday

A breakout trending-up day for NQ on Friday. A break above double top high triggered short-covering rally that lasted all day on Friday. 

Trading pattern for Monday will depends on where it trades in relation to key level.

Key Level For Monday is 2675.

-- Above 2675 implies continuing short-covering, targeting 2700 whole number resistance. Above that we have a trend-line resistance on the daily chart at around 2725 area, then a double-top resistance at 2750 area.

-- Below 2675 implies it is going down to re-test broken resistance, now support at 2665. Next support below  2665 is 2645.

Upper Value Area = 2678.50

POC = 2675.50

Lower Value Area = 2668.50

Trade Guideline For Friday

ECB's failure to deliver as promised cause the market to sell-off overnight, resulting in a large gap-down open on Thursday. 

It looked like the Fed must have triggered a massive multiple buy programs to push the market up. However, the buy programs did not seems to attract any buying, hence when the buy program ended, the sell-off resumed, taking the market back down to the opening low.

Key Level for Friday is 2612.

-- Above 2612 implies continual pullback up, target 2625, 2635

-- Below 2612 implies a re-test of Thursday's low

Trade Guideline For Thursday

NQ continued to trade inside a sideways trading range on Wednesday even after the FOMC announcement. Traders are now waiting to see what the ECB will say on Thursday.

Key Level for Thursday is 2640. Resistance 2658, Support 2620.

-- Sustained break above resistance = target 2700.

-- Sustained break below support target 2590 - 2595.

Upper VA = 2642.50

POC = 2637050

Lower VA = 2628.50