Trade Guideline For Thursday

Wednesday was another narrow-range down day for NQ.  Choppy consolidation could lead to a snap-back rally or a fast liquidation down-trending move.

Key Level to watch for on Thursday is 2645.

-- Below 2645 should continue to put downward pressure on the market, with the next support at 2625. If we get a liquidation decline, the next strong support is 2575, then 2500

-- A clear and sustained break above 2645 could trigger short-covering rally, with resistance at 2670

Hurricane Sandy wrecked havoc 

Wednesday

Market is expected to be opened, but what impact the hurricane would have on the market is anyone's guess, we shall see, and we must expect the unexpected.

Trade Guideline For Monday (NQ)

Daily Trend = Down
60-minute Trend = Down
5-minute Trend = Up at the close on Friday, and would need a clear and sustained break below 2650 to change the 5-minute trend back down.

Key Level For Monday is 2650.
-- Bullish above 2650 but there are numerous resistances to overcome.
-- Bearish below 2650, with first support at Friday low 2630, then 2625

Trade Guideline For Friday (NQ)

Another consolidation day on Thursday, with NQ staying around 2650 support. It is likely continue to consolidate sideways unless it can breakout of the range, up or down.  

Key resistance for Friday is 2675

-- If traders decide to cover their short ahead of the weekend, it could trigger a strong short -covering rally on a break above 2675.

-- Below 2675, it may continue to trade sideways unless we get a big sell program that can push the market below breakdown level, next support is 2600.

Trade Guideline For Thursday (NQ)

NQ Daily Trend  Direction = Down

NQ 60-minute Trend Direction = Down.

NQ 5-minute Trend Direction = Down at the close of the day on Wednesday

NQ has been hovering above 2650 support for three consecutive days. A strong trending down day or a snap-back rally is coming closer by the day. Which direction will the next strong move will; go depends on on where NQ trades on Thursday.

Key Level for Thursday is 2665.

-- Above 2665 implies potential short-covering with 2680 are key resistance. It would need a sustained break above 2680 to trigger a strong counter-trend snap-back rally.

-- Bearish below 2665, but it needs a clear and sustained break below 2650 to trigger a trending down day, with the next support at 2600.

FOMC decision on Wednesday was not a market mover

Trade Guideline For Wednesday

A sideways consolidation day on Tuesday ahead of the FOMC decision on Wednesday.

Support is 2650 on NQ. 

-- Above support implies more consolidation or snapback rally, with resistance at 2690 then 2705-2710.

-- Below 2650 implies a potential trending decline down to 2600

Trade Guideline For Tuesday (NQ)

Nasdaq traded sideways on Monday following a strong down-trending day on Friday. For Tuesday, depending on where it trades, NQ can continue to consolidate, or resumes its of downtrend.

Point -Of-Control For Tuesday is 2675, 
Resistance 2695, then 2708
First Support is 2665,

A break below 2665 implies a drop down to the next support, and on strong sell-off, it could easily break below 2650

Trade Guideline For Monday

Nasdaq trend down all day on Friday closing at the day low, about 15 points above the next support at 2650. What it will do next will depend on the opening price action in relation to key level for Monday.

For Monday, Key level is 2680.

-- Above 2680 implies it is going into a pullback mode with resistance at 2690

-- Next downside support below 2680 is 2650.

Black Monday, could it happen again?

Twenty-five years after “Black Monday” — when the U.S. stock market went into a free fall and the Dow Jones Industrial Average lost 22.6 percent in a single trading session — some market experts believe we could still see a repeat of the worst one-day plunge in history

http://www.cnbc.com/id/49474587/

Trade Guideline For Friday

Nasdaq tank after the Google news triggering likely wave 3 down from day high. If so, expected a lower low wave 5 before rallying back up. If not, look for NQ to rally up to resistance, 2765 then 2770

Key Level for Friday is around 2746 area.

-- Below 2746 implies the next leg down is wave 5, with support at 2717 then 2707.

-- Above 2746 is bullish, target 2752, then 2765

Trade Guideline For Thursday

As expected, Nasdaq consolidated all day on Wednesday. Without a major market-moving news, Thursday could also be another consolidation day.

Key Level For Thursday is 2770 
-- Bullish bias above with resistance at 2780 then 2790.
-- Bearish bias below, with support at 2765, 2755, then 2745

KWN: London Trader -- Competition To Buy Physical Gold Is Fierce

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/10/16_London_Trader_-_Competition_To_Buy_Physical_Gold_Is_Fierce.html

Trade Guideline For Wednesday (NQ)

Nasdaq opened with a gap-up and then trend-up all day on Tuesday, completing a very clean 5-wave rally which started at the low of the day on Monday, with a profit-taking decline at the end of the day to start off first reversal leg, wave 1 or A.  

Resistances are 2775, 2780, 2790
Supports are 2760, 2745-47, 2728

FT Pivot numbers For Wednesday area:
FTP = 2759.75
R1 = 2783.25
S1 = 2742

As European Union leaders prepare for a summit next week devoted to saving the euro, Swedish Finance Minister Anders Borg said Greece may quit the common currency within the next six months

Trade Guideline For Tuesday

A pullback up-day on Monday.  Key level for Tuesday is 2725.

-- Above 2725 implies the uptrend that started on Monday is still in progress, with the next resistance at 2745-47. On a very bullish day, next resistance is 2763-65.

-- Below 2725 implies the uptrend that started on Monday has ended, first support is Monday's swing low, then 2695 and 2650.

Trade Guideline For Monday - NQ

NQ continues to trade sideways with a slight downward bias, a base for a snap-back rally or a running correction before a massive sell-off.

The direction for NQ on Monday will depend on where it trades in relation to key level, and then what it does at breakdown and breakout level.

Key Level For Monday is 2720.
-- Above 2720 implies it is in a pullback -up mode, with resistance at 2730, then 2745-47.
-- Supports below 2720 are 2705, 2695, 2650

John Williams -- Hyperinflation in the US within 1 year

Trade Guideline For Friday

Thursday was the 5th consecutive down-days for NQ, and it is now clearly in a "CRASH" mode, with the next target down at 2650. 

Nasdaq decline so far is being slowed down by the S&P 500 holding above key support 1425 in S&P futures. A clear and sustained break below 1425 in S&P could trigger massive selling in all markets, including Nasdaq.

Key Level to watch for on Friday is 2720 in NQ and 1425 in ES.

-- Above 2720 in NQ implies likely ABC wave up rally, targeting 2745-47 resistance. If the market can get very bullish, a clear and sustained break above 2747 could trigger a short-covering rally up to 2765, then 2775 resistance.

-- Below 2720 implies the next big down-leg is in progress, with first support at 2703-2694. If ES can break and stay below 1425, NQ could liquidate down to 2650 or lower. 2650 is the next major support for NQ.

Trade Guideline For Thursday

Wednesday was the fourth consecutive down-days, with minor support at 2718 holding up the decline, for now at least. On a break below 2718 the next minor support that may halt or slow down the decline is 2700.

Below 2700 the next support is 2650. It is possible going into the weekend that we may get a pullback up day or days, especially if either 2718 or 2700 support can hold.

Key level for Thursday is 2718.

-- Above 2718 implies NQ is in a consolidation / pullback-up mode with the first resistance at 2745-47. It would take a very bullish day to clearly break above 2745-47 resistance. However, should it breaks, a sustained break above 2747 has the potential to trigger a short-covering rally that can push price up to 2763 resistance and 2773-75 resistance.

Trade Guideline For Wednesday

On Tuesday, as expected, trading below key support level resulted in a large-range down day. For Wednesday, depending on where NQ trades at, it is either going to be another large-range down day or sideways consolidation day or pullback-up day.

Key Level for Wednesday is 2730 support.

-- A sustained break below 2730 support could trigger a very large down day, as the next support for NQ is not until 2650, but first target down  is 2700, then 2650.

-- Above 2730 implies sideways consolidation day or a pullback-up day, with upside resistances at 2760, 2775

Spanish Austerity Protest Continues

Trade Guideline For Tuesday

A narrow-range down day on Monday following a reversal day on Friday. Depending on where the market trades on Tuesday, it could either be a pullback-up day or a strong sell-off day. 

The market technical pattern is set for a strong sell-off day or days.

 Key Level for Tuesday is 2762.

-- A clear and sustained break below 2762 area could trigger a massive market sell-off  with first downside target 2730

-- Above 2762 implies continual sideways consolidation day or an up-day, with resistances at 2800, then 2810-2815.

FT Pivot Numbers area:

FTP = 2783.25

R1 = 2792.00

S1 = 2770.00

Spanish anti austerity protest continues to intensify

Trade Guideline For Monday

A gap-up open reversal day on Friday, retracing the prior 2-day rally.

Key Level to watch on Monday is 2815.

--- Above 2815 implies Friday down-wave has ended, and in a rally mode. Resistances are 2825, 2830 and 2838.

--- Below 2815 implies Fridays decline is still in progress, downside supports are 2800, 2790, 2781, 2772

Monday is a Columbus Day holiday in the US, and the Bond market will be closed, hence be prepared for a possible narrow-range choppy day.

Trade Guideline For Friday

A narrow-range short-covering day on Thursday with the close not far from the high of the day. 

Key Level For Friday is 2820.

-- Above 2820 short-covering should continue, target 2838, then 2853

-- Below 2820 implies NQ is in a pullback mode, target down 2810 then 2800, 2790

Gold Price Chart since 1970.

Trade Guideline For Thursday

Another consolidation day on Wednesday with a bullish bias. For Thursday key level to watch for is Wednesday's swing high. 

-- A sustained break above Wednesday high could trigger short-covering rally, targeting 2838 then 2853 area. 

-- Below Wednesday low implies it is going down, first target is FT Pivot 2806, then 2890 and 2782

Chart of US Monetary Base

Trade Guideline For Wednesday

Another consolidation day on Tuesday with the close near the high of the day, the first leg up, wave 1 or A.  Once that ends, look for a pullback down to be followed by another upleg, as long as the pullback down does not break below Tuesday's low. 

Key supports are 2788 then 2782, then Tuesday's low. Breaking below Tuesday's low target 2763.

Resistance is Tuesday's swing high, then 2808, 2817, 2825.

Gold Chart adjusted to real inflation

Trade Guideline For Tuesday

Market opened with a gap-up on Monday after the unofficial announcement of QE4, but was short-lived as NQ reversed back down to closed near the low of the day, on a negative momentum into the close.  It would have to trade above 2800 to regain bullish momentum

Key Level For Tuesday is 2800.

-- Continuing bearishness below 2800, with key support at 2772. Next support below is September 26 swing low. A clear and sustained break below could lead to a liquidation decline.

-- Bullish bias above 2800 with key resistance at 2825.  next resistance above is 2853.