Trade Guideline For Thursday

A gap-reversal day on Wednesday as traders rushed in to go long way above 2600 support, an indication of a very strong uptrend.

The rally stopped almost exactly at 2665 key resistance. Going forward, it either rocket up above 2665 resistance going to the next resistance at 2695 and then 2710, or pullback down from 2665 down, first support is 2640.

Trade Guideline For Wednesday

A sideways consolidation day on Tuesday with a close at key support at 2640.  Below 2640 could imply a down day for Wednesday, and above 2640 we could see continuing short-covering.

Resistance Levels are 2660 - 2665, then 2700

Support Levels are 2625 and 2600.

Trade Guideline For Tuesday

Short-covering continued on Monday breaking above 2640 resistance level. 

For Tuesday, short-covering should continue above 2640, with next resistance zone at 2655 - 2665 area.  Below 2640 implies it is going into a pullback mode, with first downside target at 2625.

A clear and sustained break below 2625 has the potential to tank NQ down to the next support level, 2600.

Trade Guideline For Monday

Another short-covering day on Friday, approaching area of strong resistance, 2640 to 2655.  

Key Level for Monday is 2625.

-- Short-covering should continue above 2625 targeting resistance levels above.

-- Below 2625 implies it is in a pullabck / consolidation mode, with support at 2600.

Note that retail sales figures from Black Friday was worse than last year, hence may have a negative impact on the market going forward and fighting against the usually bullish period of the year --- the Santa Clause Rally from now to the end of the year.

Friday

Because most traders are still on thanksgiving holiday, the market is likely going to be non-trending, sideways market. If trading, always on a lookout for unexpected moves.

Market Will be Closed On Thursday

Trade Guideline For Wednesday

As expected, a consolidation day on Tuesday following a trending day on Monday. 

Key level For Wednesday is 2570.

-- Above 2570 implies it is still in a pullback mode up, with resistance at 2605 then 2630.

-- Next support below 2570 is 2540

Trade Guideline For Tuesday

A gap and run open-drive up-day on Monday, likely wave 3 gap. If Monday was a wave 3 gap-up, we would get a pullback on Tuesday followed by a higher high, then a reversal back down.

Next resistance is 2600-2605.

Trade Guideline For Monday

A pullback day on Friday after making a lower briefly breaking below 2500 support. Monday is likely another pullback day unless it breaks back below Friday's low.

Key Level for Monday is Friday's Swing High.

-- Above Friday high has the potential to trigger short-covering rally, next 2570-2580.

-- Below 2540 implies consolidation, with support at Friday's swing low. It would need to clearly break and stay below Friday low to trigger another round of liquidation, target 2450

Trade Guideline For Friday

Nasdaq opened inside prior day range on Thursday, a clear indication that we are likely going to have a no-trending consolidation day.

At the close, we have the following situations:

Daily Trend = Down

60-minute Trend = Down

5-Minute Trend = Consolidation

Key Level For Friday is Thursday's swing low.

--- Above Thursday low implies it is in a pullback mode, with first resistance at 2550.

--- Next target / support below Thursday low is 2500. A clear and sustained break below 2500 could cause a massive liquidation drop, with next support at 2450.

Trade Guideline For Thursday

At the close on Wednesday:

Daily Trend = Down

60-minute trend = Down

5-Minute Trend = Down

On Wednesday NQ either continue down to the next support at 2500 or consolidate between Wednesday low and first resistance at 2550. 

-- Sustained break below Wednesday low could trigger another round of liquidation decline, targeting 2500.

-- Above Wednesday low implies consolidation.

Trade Guideline For Wednesday

Nasdaq opened gap-down to near 2550 support level mentioned numerous time in my previous post, then promptly reversed up to close the gap before pulling back down to re-test last Friday's swing low. It then rallied back up to FT pivot.

Failure to break above the pivot resulted in a pullback down to re-test morning swing low, cling at .786  area.

Key Level for Wednesday is 2550 support.

-- Above 2550 would result in consolidation, resistances are 2570, 2585, 2595

-- Below 2550 could trigger another rounds of liquidation decline, with next support at 2500.

Trade Guideline For Tuesday

Second consolidation day on Monday. The pattern from Friday to Monday is a contracting triangle, looks ready to breakout.

Key Levels for Tuesday are 2590 as resistance and 2575 as support.

-- Breaking above 2590 resistance could potentially trigger a short-covering rally, targeting 2610 then 2630

-- Below 2575 target Friday low. A sustained break below Friday low could trigger another round of liquidation decline

Trade Guideline For Monday (NQ)

A consolidation day on Friday, which could lead to more consolidation or short-covering rally day on Monday unless it can clearly break below Friday low and stay below Friday low on a break.

Key level For Monday is Friday swing low.

-- Above Friday low implies a consolidation day or a short-covering day. Resistances area 2610, 2620, 2630, 2640

-- Below Friday low implies another liquidation day, support is 2550, then 2500.

Trade Guideline For Friday

Nasdaq downtrend continued on Thursday, and the next support is 2550. Whether or not it will bounce as it approaches 2550 support area, only time will tell, but the downward momentum is very strong.

Key Level for Friday is 2600.

-- Below 2600 implies strong downtrend is still in progress, next support is 2550, then 2500.

-- Above 2600 implies it is going into consolidation, with resistance at 22610, then 2625.

The bear is firmly in control at the moment

Trade Guideline For Thursday

A the close on Wednesday we have the following trend directions:

Daily Trend = Down

60-Minute Trend = Down

5-minute Trend = Consolidation

On Wednesday, Nasdaq opened with a large gap-down and then trend down  to 2600 support zone before consolidating the rest of the day. If consolidation is complete it should trend down again on Thursday, next support is 2550. 

Key Level For Thursday is 2610

-- Above 2610 implies it is still in a consolidation / pullback mode, with resistances at 2630 and 2640.

-- Below 2610 implies consolidation may have ended and the next down-leg is in progress. However, it needs a clear and sustained break below Wednesday low to trigger another round of liquidation decline.

Obama Re-elected

Trade Guideline For Wednesday

A second consolidation day on Tuesday with short-covering rally in the morning that was reversed, making Tuesday a doji day as seen on the daily chart.

If pullback is complete we could see the market resume its downtrend on Wednesday. Some large funds could use the result of the US presidential election as an excuse to trigger a huge buy or sell programs, so we must watch the key level very closely on Wednesday.

Key Level For Wednesday is 2675.

--- Below 2675 is bearish and could imply the beginning of the resumption of daily downtrend, next target is a re-test of Friday low.

--- Bullish above 2675, implies more short-covering, with the next resistance at 2705.

US Presidential Election Result Could be Key for the market direction Going Forward

Trade Guideline For Tuesday

An inside day on Monday for Nasdaq, basically trading sideways in a pullback mode.

Key Level For Tuesday is 2655.

-- A sustained break below 2655 implies it is likely to re-test Friday's swing low again. A clear break has the potential to trigger a liquidation decline if stop-loss resting just below Friday low get hit.

--- Pullback that can stay above 2655 implies more short-covering rally, next target up is a re-test of Friday high.

Trade Guideline For Monday

Daily Trend = Down

60-Minute Trend = Down

5-minute Trend = Down

Nasdaq opened gap-up on Friday then reversed down, and trend down all day, making i a gap-reversal day. At the end of the day the trends are clearly down, closed near key support 2640.

For Monday, Key Level to watch for is 2665.

-- Below 2665 implies the downtrend is still intact, next target down is a break below 2630 prior swing low 

-- Above 2665 is bullish and could re-test last Friday high.

Trade Guideline For Friday (NQ)

A snap-back short-covering rally on Thursday ahead of the important job number on Friday. After the release on Friday we can either see more short-covering or a decline back down.

Key Level to watch for on Friday is 2680.

-- More short-covering above 2680, with resistances at 2695, 2705, then 2715

-- Bearish below 2680, with supports at 2660, 2650