Trade Guideline For Monday (NQ)

Nasdaq traded sideways on Friday between support and resistance. For Monday key support is 2787 and key resistance is 2810.

A clear and sustained break out of the 2787-2810 trading range could trigger a strong trending move in the direction of the break. 

-- Below 2787, other supports levels are 2773, 2763, 2737.

-- Above 2810, other resistance levels are 2820, 2837, 2853

Trade Guideline For Friday (NQ)

On Thursday, Nasdaq trend-up all day, on its second up-leg towards resistance. Key level for Friday is Thursday's closing price 2813.50. 

-- Above 2813.50 area/zone implies the current uptrend is still in progress, next target is 2826 resistance. Failure to mount a sustained break above could result in ABC pullback down or trend reversal down.

-- Opening below 2813.50 area/zone implies current uptrend has ended and it is in consolidation mode, target FT Pivot. As long as Pivot is not clearly violated, look for the market to rally back up. However, a clear and sustained break below FTP could lead to a sell-off down to next support, 2787 area.

Trade Guideline For Thursday

On Wednesday Nasdaq opened and continued its downtrend that started on Tuesday, stopping just above 2760 support. It then spent the rest of the day consolidating. It is likely to continue down once the current consolidation is complete. next target down is 2740. 

-- Resistance for Thursday is 2785, then 2795.

-- Support for Thursday is 2760. A clear and sustained break below 2760 could trigger another round of liquidation decline, targeting 2740, then 2715.

Trade Guideline For Wednesday (NQ)

On Tuesday, Nasdaq opened with a gap-up to resistance then promptly dropped down to close the gap & to FT Pivot support before bouncing back up to re-test resistance and complete the ABC zig zag wave up (equal leg up) that started on Monday afternoon. Once completed NQ quickly tank, breaking below several support levels before stalling just above strong support at 2795.

Key Level for Wednesday is 2795 support.

-- Above 2795 implies the current downtrend that started on Tuesday has ended, look for pullback up to 2815. 

-- Above 2815 implies it is going into consolidation with 2825 as upside target. It would need a very bullish market condition to clearly break above 2825 resistance zone.

-- Below 2795 implies more liquidation, lower support levels are 2785, 2775, 2760. It would need a very bearish market condition to break below 2760. If so, next support is 2740.

FT Pivot = 2818.50

R1 = 2838.75

S1 = 2784

Trade Guideline For Tuesday

Nasdaq opened with a large gap-down on Monday then traded sideways the rest of the day, closing just above 2835 support.

For Tuesday Key Level is 2835.

-- Bullish above 2835 with resistance at 2850 then 2860. Above 2860 target a re-test or a break above above last Friday swing high 2874

--  Bearish below 2835 with downside target at 280-2825. If we get a very bearish day next support down is 2795

Trade Guideline For Monday

On Thursday NQ opened with a gap-down, then quickly reversed back up. Then on Friday, it opened with an gap-up, then reversed back down, closing near the low of the day, a mirror image of Thursday pattern, in  the opposite direction. 

For Monday where it opens in relation to key price level, 2860, will determine the type of pattern we are going to get for NQ.

1). Opening below 2860 could cause a trending down day, breaking below support zones. Supports are 2833-2837, 2822-2825..

2). Opening below 2860 could imply a reversal-up day if support  levels hold. 

3). Opening above, or a break above 2860 implies an up day targeting a break above last Friday swing high. A sustained break above 22874.25 could trigger a short-covering trending up day, but failure to clearly break above would cause a reversal back down to 2860.

Spain gears up for bank bailout by eurozone partners

http://www.bbc.co.uk/news/business-19675961

Trade Guideline For Friday

Nasdaq opened gap-down then reversed back up closing near the day high. key resistance is now Wednesday swing high. Failure to break above implies it is going down towards Thursday's swing low. 

Key Level for Friday is 2850. 

-- Above 2850 implies the bias is up, targeting Wednesday's swing high and/or reversal zone.

-- Below 2850 implies the next downtrend is in progress, targeting a break below Thursday's swing low. Supports are 2835, then 2825

FT Pivot Levels

FT Pivot = 2849.75

R1 = 2862.25

S1 = 2841.75

Trade Guideline For Thursday (NQ)

Nasdaq finally broke above the last two day trading range, then trend-up, breaking above last week Friday swing high before dropping back down for the end of day profit-taking decline.

Key Level For Thursday is 2860.

-- Above 2860 implies the trend that started on Wednesday is still intact, next target up is 2880 - 2900.

-- Below 2860 implies trend has ended and potentially reversing back down. Support are 2850, then 2840. Breaking below 2840 has the potential to trigger stop-loss, triggering a fast drop down to 2820-2825 strong support zone.

Japan launches QE8 as 20-year slump drags on

Japan has launched an eighth round of quantitative easing to weaken the yen and cushion a slide back into recession.

Link to the full article:http://www.telegraph.co.uk/finance/economics/9554131/Japan-launches-QE8-as-20-year-slump-drags-on.html

Trade Guideline For Wednesday

Another very narrow-range day on Tuesday but the markets has started to trend higher after the Bank of Japan announced more stimulus. 

Nadsaq NQ has spiked above last week Friday's swing high in response to the BOJ announcement. If the bullish impact can continue into Wednesday morning we could have a gap-up open above Friday's swing high, causing an imbalance opening, likely to trigger a wide range day.

-- If so, and if the open is above 2860, look for a trending up day, as long as price can stay above 2860, targeting 2880 to 2900. 

-- Look for a gap-reversal if it cannot stay above 2860, targeting a break below Monday's swing low. Supports are 2835-2840, 2820-2825

BOJ eases monetary policy, boosts stimulus by $128 billion

Trade Guideline For Tuesday

A very narrow range consolidation day on Monday. It may be a setup for a wide-range trending up day. But whether or not it will trend on Tuesday, will depends very much on where it opens and trades on Tuesday morning.

Key Level For Tuesday is 2845, with 2860 as first resistance and 2835 as first support

-- Bullish above 2845, but is has to clearly break and stay above 2860 to trigger another round of short-covering to propel a wide-range up-trending day, targeting 2880 to 2900. A re-test of 2860 swing high, or a false-break above 2860 implies fast reversal back down to support.

-- Below 2845 implies it is still in consolidation, with first support at 2835 then 2825. it would take a clear break below 2820 to run-over trailing stop-loss, triggering a fast liquidation drop. Strong support resides at 2795.

FT Pivot 2846, R1 2852.25, S1 2841

Fed's QE Programs

Trade Guideline For Monday (NQ)

NQ rallied in the morning on Friday then consolidated the rest of the day, closing near the high. 

For Monday, key level to watch for is Friday's swing high.

-- Below Friday's high implies consolidation is still in progress, with support at FT Pivot, then 2835, 2825, 2820. A clear break below 2820 could run-over trailing stop-loss, and can potentially trigger a fast drop.

-- A sustained break above Friday's high implies consolidation has ended and the next up-leg is in progress, targeting the zone between R1 and breakout. 

FT Pivot Levels

FTP = 2847.75, R1 = 2862.75, S1 = 2836.50

Bernanke and Draghi Adds Fuel To Gold's Fire, even Miners rally

Link: http://www.forbes.com/sites/afontevecchia/2012/09/14/bernanke-and-draghi-add-fuel-the-gold-fire-even-miners-rally/?partner=yahootix

Trade Guideline For Friday

Massive buy programs by the Fed after the released of their FOMC minutes with QE3 announcement helped pushed the market up to close near the day high.

For Friday, key price level is 2820.
-- Above 2820 implies the current uptrend on the 5-minute chart is still in progress.
-- Below 2820 implies NQ is going into a consolidation mode, targeting 2805-2810

Trade Guideline For Thursday (NQ December Contract)

Nasdaq traded sideways ahead of the the FOMC decision on Thursday. Whether or not the Fed decision (mostly nothing new anymore) would move the market, only time will tell, and will depends on where the market trades in relation to the key level.

Key Level For Thursday is 2793 on NQ December contract.

- Bullish above 2793 and could trigger a fast short-covering rally, with first resistance at 2815-2820.

- Bearish below 2793, first support at 2775. A clear and sustained break below 2775 could trigger a liquidation decline, next support level is 2760 then  2738

The Fed and the QEs

Trade Guideline For Wednesday

Nasdaq traded sideways in a consolidation pattern on Tuesday following a trending-down day on Monday. The FOMC meeting will start on Wednesday for their 2 days meeting, with their policy decision to be released on Thursday, so it is possible for the market to stay inside Tuesday trading range, as traders may want to wait for the FOMC minutes before making a major decision. So be on a lookout for potential falsebreak reversal of Tuesday's high and or low.

Key Level on Wednesday is 2780, prior trading range high resistance now support.

-- Above 2780 implies more consolidation, with first resistance at Tuesday swing high. A clear and sustained break above Tuesday high could trigger a short-covering rally, targeting next resistance at 2820 area.

-- Below 2780 could trigger more liquidation decline, with the next downside target at 2760 then 2743.

FT Pivot Levels
R1 = 2793.25
FTP = 2786.50
S1 = 2773.00

FOMC meeting starts on Wednesday

Trade Guideline For Tuesday

A down-trending day on Monday, closed at the low of the day, 2785 prior swing high now support. A stronger support level is 2780. It would need a strong selling pressure to clearly break below 2780. However, should 2780 support fail to reverse the downtrend, the next support level is 2765 then 2743.

Key Level For NQ on Tuesday is 2780 support. 

-- Below 2780 implies the downtrend is still in progress, next target is 2765 then 2743.

-- Above 2780 implies it is going into consolidation or trend reversal up, with the first target 2800-2805, then if that level is broken, the next upside target is 2820.

FT Pivot Levels

R1 = 2811

FTP = 2797.75

S1 = 2771.75

Trade Guideline for Monday (NQ)

Last Friday was a non-trending consolidation day following a breakout trending-up day on Thursday. If we are going to get the next up-leg it should do so on Monday with the next upside target between 2850-2860, and that should be wave 5 up from September 4 swing low.

A gap-up into 2850-2860 area or a gap-up and run-up into the zone could result in a trend reversal, the end of wave 5.

Key Level for  Monday is Friday's swing high.

-- Above Friday high implies the next leg up, wave 5, is in progress, targeting 2850-2860 area.

-- Below Friday high implies consolidation is still in progress. Breaking below Friday's swing low target a re-test of 2803 previous resistance, now support.

FT Pivot Levels
R1 = 2833.75
FT Pivot = 2825.50
S1 = 2814.50

BERLIN (Reuters) - Germany's Constitutional Court holds the fate of the euro in its hands when it rules next week on whether a crucial euro zone financial rescue fund can go ahead.

A negative ruling, considered improbable by legal experts, would cast the 17-nation European single currency area into turmoil, spurring panic on bond markets by raising doubt over any more rescues of debt-laden southern states.

Coordinated Central Bank Stimulus Taking Place

Below is a series of very nicely done cartoon depiction of stimulus programs (QEs) from Jim Sinclair of jsmineset.com.

"Coordinated central banks monetary and fiscal stimulation is taking place"

Trade Guideline For friday

A breakout trending-up day on Thursday with the close near the day high. For Friday, as long as there is no negative news regarding ECB bond purchase program, Thursday's trend should continue up, with potential pullback in the morning. 

As long as Friday morning pullback can stay above 2810-2815 the uptrend is still intact, with the next upside target at 2850 - 2860.

FT Pivot levels

R1 = 2842.75

FTP = 2813

S1 = 2796.25

Trade Guideline For Thursday

A narrow-range inside day on Wednesday with price action staying inside Tuesday's trading range, the opening and the closing price were at about the same price level.

For Thursday price needs to breakout and stay out of Wednesday's trading range between 2760 support and 2780 resistance (2760-2780) to trigger a trending move in the direction of the break.

Key Level For Thursday is 2770.
-- Bullish bias above 2770, with first resistance at 2780, then 2800.
-- Bearish below 2770 with first support at 2760, then 2743.

Trade Guideline For Wednesday (NQ)

Another sideways consolidation day for Nasdaq on Tuesday, dropping down below key level to test 2743 support before bouncing back up, and then broke above key level 2770.. 

Where it opens and trade in the morning in relation to key level will determine the bull-bear bias for the morning price action.

For Wednesday, 2700 remains as key level.

-- Above 2770 implies bullish bias with 2790-2800 as first upside target. Without a clear and sustained break above 2800, price will reverse back down to 2770 area. A clear and sustained break above 2800 could trigger a fast short-covering rally.

-- Below 2770 is bearish, targeting a re-test of 2743 support.  Without a clear and sustained break below 2743, price will reverse back up to 2770 area. A clear and sustained break below 2743 could trigger a liquidation decline down to next support level at 2723.

Silver Breaking Out

Silver is breaking out of key resistance zone on a weekly chart which is coming in around $30 per ounce. A sustained break above $30 could trigger strong short-covering rally.

First Resistance Zone is $34 - 36, then $43, $48.50

Below is a weekly chart of Silver Exchange-traded Fund, Symbol SLV.  

Gold Breaking Out

Gold weekly chart is showing that gold has broken out of key resistance-support level around $1,600 per ounce with the next resistance coming in around $1,760. 

Below is a chart of gold Exchange-Traded Fund symbol GLD.

Trade Guideline for Tuesday

Last Friday, ahead of the long labour day weekend, Nasdaq continued to trade sideways inside its established trading range, with the close right at key support-resistance level for Tuesday. For Tuesday, the bear-bull market bias will depends on where it opens and trades in relation to it key level.

Key Level For Tuesday is 2770.

-- Bullish bias above 2770, with 2790-2800 as the first upside target. It needs a clear and sustained break above 2800 to trigger a trending-up day.

-- Bearish bias below 2770, with 2740-2745 as first downside target. It needs a clear and sustained break below 27440 to trigger a trending-down day, with 2723 as next support level

Germany's Angela Merkel is just visited China, asking the Chinese leadership for permission to launch their Eurozone massive quantitative easing, likely their final move to help delay the eurozone inevitable collapse.