NQ Guideline for Thursday

Nasdaq trend on the daily chart is up. After making a higher high NQ will reversed sharply down. The pattern will continue as long any decline stays above key level.

For Thursday Key level is 3080.

-- As long as any decline does not clearly break below 3080 the pattern of higher-high should continue, with next target is a break above Wednesday high.

-- Clearly breaking below 3080 implies a larger pullback is in progress, with the next support at 3070 and 3057. As long as the market does not get extreme bearish 3057 support should hold.

No change in Fed policy, QE will continue and in fact it will be increased. The Fed is the only buyer of the US treasury bonds. 

The US QE model is following the model of the French Assignat

Wednesday Guideline For NQ

NQ rallied to higher-high in the morning, breaking above prior swing high, July 18-19 before reversing sharply back down to try to close the gap, then rallied in the afternoon closing just below resistance.

Key Level for Wednesday is 3087.

-- Above 3087 is an indication that NQ is going to rally to another higher-high.

-- Staying below 3087 implies another potential decline back down to support 3057 area.

The FOMC decision will be announced in the afternoon. Whether or not it will cause any market reaction only time will tell, but always be on the lookout for Fed buy programs, which they may engineered before the announcement or after the announcement, or both.

Guideline For Tuesday

After making a higher high, NASDAQ pulled back down to 3057 support on Monday, then bounced from support, closing right in the middle of the day range.

For Tuesday, as long as it can stay above 3057 support, NQ should continue to rally to higher high above Monday swing high before reversing back down to support, first support will be FT Pivot, 3067.75, then  it that breaks, next support is breakout support 3055-3057 area..

Guideline for Monday (NQ)

In the afternoon on Friday, NQ finally broke out above a trading range that it has been trading inside for the last 4 days prior. The next resistance is 3085-3100.

Key Level now for NQ is 3055, prior trading range resistance, now will provide support for any pullback/decline.

-- As long as pullback decline can stay above 3055,NQ should continue to rally up to 3085-3100 resistance zone.

-- A break-back below 3055, however, will attract selling that could tank the market down to the next prior trading range support at 3025. I am not expecting it to break below 3025 support unless we get some unexpected bearish market-moving news or unexpected bad earning reports that cause the market to get very bearish.

The US Treasury Bond/notes continues to collapse... and US dollar continues to collapse as well, possibly a prelude to Gold rally and US stock market sell-off, a potential repeat of the 1987 stock market crash

Friday Guideline

Nasdaq has been trading inside a narrow trading range between 3025 support and 3055 resistance for three consecutive days. It needs to clearly break out of the range to trigger a trending move in the direction of the break.

Is it going to break out of the 3025 - 3055 trading range on Friday?, maybe, but it is not very likely as options expiration Friday tends to be choppy, but we must always watch out for the unlikely event.

Gold continued to rally, resistance is 1350-1360

Guideline For Trading NQ on Thursday

Another day of sideways market for NQ on Wednesday even though the Fed tried to trigger a short-covering rally by engineering a huge gap-up open above prior day high. A gap-up above Tuesday's swing high failed to trigegr a short-covering rally as NQ dropped back down to prior day range.

I am certain they will try again on Thursday, again with key level at 3055.

-- It would need a sustained break above 3055 to trigger a short-covering rally. If so, next resistance is 3072.50.

-- Below 3055 we may get another sideways range bound market with support at 3025. It would need a sustained break below 3025 to trigger long-covering, causing a fast move down to overwhelming the buyers, dropping down to the next support at 3000.

Gold pulled back down after rallying up to just below strong resistance zone at 1350-1360 area closed at 1320. Whether or not it is going to be a one day pullback only time will tell, we shall see what happens on Thursday. Failure to rally back up on Thursday implies deeper pullback in gold before attempting to break above resistance.

Guideline For Wednesday -- NQ

A down day for NQ on Tuesday with a small breach of Monday's swing low right at the end of the day. NQ looks ready to go down to the next support level 3000, but as we all know, the market is rigged by the Fed so keep an eye on 3025 price level.

So, key level to watch for on Wednesday is 3025.

-- Below 3025 implies NQ is on its way down to the next support level 3000.

-- Above 3025 in an indication that NQ is either going to trade sideways between 3025 to 3055. 

Although not expected (unless the Fed engineered large buy programs to cause NQ to trade above 3055) a sustained and clear break above 3055 could cause a short-covering rally, with the next resistance at 3072.50

Gold continued to rally on Tuesday, now just below strong resistance zone at 1350-1360 area. Gold may have to pullback down to 1250-1260 area before attempting to break through 1350-1360 strong resistance zone.

However, breaking above 1350-1360 on the first attempt now is an indication of panic short-covering by the short-sellers. If so, look for gold to rocket up to 1425 - 1540 area very quickly.

Tuesday Guideline For NQ

Following a large down-move on Thursday and into Friday last week, the market paused and consolidated on Monday, stayed inside a trading range.

It is likely to make a large move on Tuesday but the direction is not clear, as it will depend on where it trades in the morning.

-- Trading above Monday;'s high implies a bullish day, likely to trigger short-covering rally up to resistance, 3065 and 3072.50.

-- Trading below Monday's low should trigger selling algorithm with the potential to take price down to 3000.

Gold continued to rally

Monday Guideline For NQ

Nasdaq sell-off that started on Thursday night continued into Friday  with some profit-taking at the end of the day.

Key level to watch for on Monday is 3030.

-- As long as price can stay above 3030 NQ is either going to rally to resistances, 3050, 3065 and 3072.50 or trade sideways inside a trading range, between 3030 to 3050-3060.

-- More selling to be expected below 3030, next support is at 3000.

Guideline For Friday -- NQ

Less than perfect earning reports by Microsoft and Google at the end of the day on Thursday caused strong sell-off into the close.

Whether or not the selling momentum into the close would carry over into the opening bell on Friday will depend on how much capital the Fed will allocate for buy programs on Friday. Without a significant amount the buy programs may get overrun by selling pressure.

Key level for Friday is 3050.

-- Above 3050 implies the rally should continue, with first resistance at 3075. Breaking back above 3075 could trigger some short-covering rally as the short covers.

-- More selling to come below 3050, with next support at 3000

 

Trade Guideline For Thursday

Another higher high before pulling back down to consolidate, another narrow range day. The pattern of higher high then consolidation should continue as long as it can stay above key support, which for Thursday will be 3062.50.

Below 3062.50 implies NQ is going into a larger pullback down, next support is 3050.

Ben Bernanke's testimony on Wednesday did not move the market.

Trading Guideline For Wednesday - NQ

Another higher-high for NQ on Tuesday before pulling back down to support and traded sideways into the close. 

For Wednesday Ben Bernanke's testimony could move the market either up or down depending on what he is going to say, and more importantly, how much money the Fed is going to spend on buy programs to support the market..

Whatever it may be, support is at 3062.50.

-- The rally should continue above 3062.50, next upside target is higher high above Tuesday's swing high.

-- A clear break below 3062.50 has the potential to run-over trailing stop-losses, next support is 3050 which is a strong support.

It would requires a very bearish market internals for NQ to break below 3050, otherwise, look for the market to bounce and rally back up from 3050 support..

Guideline For Tuesday - NQ

Current up-trending market  was still solidly intact on Monday making another higher high. At the end of the day on Monday it looks ready to pullback down to support. 

As long as support is not clearly violated the uptrend should resume after pulling back, next target is a higher high above Monday's high.

 Support on Tuesday are 3060 and 3050.

Running with the bull continues

Trade Guideline For Monday

The daily trend is Up and Friday was no exception with the NQ continuing to make a higher high. The uptrend should continue as long as pullback does not break below key support level.

In nasdaq NQ, trailing stop-loss for the buyers are now mostly below 3050, hence as long as pullbacks do not clearly break below 3050 the market should continue to make a higher high.

Trading below 3050 could trigger some stop-losses taking price down to supports at 3040, 3020 and strong support at 3000.

Trading Guide For Friday

A gap-up and trend-up day on Thursday with a close near the high of the day. For Friday, with or without a pullback, a continual push above 3050 should trigger more short-covering rally. 

However, below 3050 is an indication that NQ is in a pullback mode with first support at 3025.

No tapering for Ben's QE programs until the system collapses

Trade Guideline For NQ

Ben Bernanke has came out after-hours on Wednesday with some statement that signaled QE will not end any time soon. On that news the equity and the gold markets has rocketed upward after hours, with the US dollar in free-fall.

If the momentum follow through into the morning, and it should continue unless Ben Bernanke change his statement in the morning, look for the market to open with a big gap-up and trend up all day as the shorts covers.

** If we get a big gap-up open, key level to watch for after the open is the opening price level, bullish above the open, bearish below the open.

Key Level for NQ on Thursday will be 3000.

-- Above 3000 short-covering will continue with next key resistance at 3050.

-- Below 3000 implies larger pullback is in progress. 

Trade Guideline For Wednesday

The uptrend continued on Tuesday with profit-taking decline at the end of the day. If the end of the day decline continues in the morning look for key support at 2965. A clear break below 2965 implies a larger correction is in progress. 

If 2965 support hold, look for NQ to trend back up to higher-high above Tuesday's swing high

If NQ open with a gap-up above Tuesday's high look for a gap-close trade or a fat morning rally to 3000.

NQ Guideline For Tuesday

The uptrend continued on Monday, with NQ making a higher high with a gap-up open then pulling back down in the morning and rallied in the afternoon.

The afternoon rally looks choppy, displaying a bear flag, implies a potential morning decline in  the morning on Tuesday, unless of course it stays above key support 2950. 

-- Above 2950 implies uptremd continues, next target is above Monday's swing high with resistance coming in at 2995-3000. 

-- Below 2950 is bearish at least in the morning, with next support at 1915.

Guide For Trading NQ on Monday

Recent intraday pattern has been either morning rally followed by afternoon decline, or morning decline followed by afternoon rally.

As long as the bond market and the gold market continues to crash, the money coming out of the bond  and the gold market should continue to flow into equities and oil, (bullish equity and oil)

Friday's pattern was a morning decline followed by afternoon rally. The pattern should continue for a while, but keep in mind that there is still a small chance of a one-directional trending day, with no afternoon reversal.

Key level for Monday in NQ will be 2950.

-- Above 2950 implies a likely morning rally, with first resistance at 3000. A clear and sustained break above could trigger a trending-up day. 

-- Below 2950 implies morning decline with supports at 2940 and then 2917

NQ Trade Guide For Friday

The rally continued on Wednesday, and likely to continue on Friday as long as any decline does not break uptrend support.

For Friday, uptrend support in the morning will be 2950, and as long price is above 2950 in the morning on Wednesday the uptrend should continue with the next resistance at 3000. 

Below 2950 implies NQ is in a decline mode with key support at 2935 and 2915

Trading Guide For Wednesday

Another day or morning rally followed by afternoon selloff. The equity market will be opened half day on Wednesday ahead of the 4th of July holiday.

Key Level to Watch for in the morning is 2918.

-- Bullish bias above, and 

-- Bearish bias below