Happy New Year

With most traders out of the office for the New Year Eve celebration anything can happen in the market. Regular trading activities may not resume until next week.

NQ Guideline For Monday

NQ broke above 4300 resistance then trend up all day, Christmas present for the market  courtesy of the Fed. Going into year end it is difficult to believe that the Fed is not going to continue to buy the market, and also the first couple of weeks in January tends to be bullish.

Key price level for Monday in NQ will be 4300 support and 4320 resistance.

-- Bullish above 4320

-- An indication of a larger pullback down on a clear break below 4300, next support is 4285 then 4270.

NQ Guideline For Friday

With most traders out of the office for the Christmas holidays and the end of the year holidays this week and next week, it is likely that the market is going to continue to trade sideways. 

For NQ, unless it can clearly breakout and stay out of the current trading range between 4270 support and 4300 resistance, look for NQ to remain inside the range, 4270 - 4300.

With the Fed not expected to launch QE4 until either in the second half of 2015 or in early 2016, look for crude oil price to remain under downward pressure and the downtrend should continue. Without new QE look for crude oil price decline to continue down to $20 - $30 area. Continual decline will cause a meltdown in high-yield bond market which would wreck havoc in the financial market that has the potential to suddenly "crash" the stock market.

As we can see from the chart below, since 2009, crude oil price rally with QE and tank without QE.

NQ Guideline for Wednesday

On Tuesday after opening with a gap-up and then selling off in the morning NQ traded sideways all day and into the close.

With most traders out of the office for the Christmas holidays, Wednesday trading could be interesting, and anything can happen. key price inflection level for NQ on Wednesday will be 4285.

NQ Guideline For Tuesday

On Monday NQ consolidated between 4285 support and 4300 resistance all day, unable to break above 4300 resistance or breakdown below 4285 support. For Tuesday NQ can either continue to stay inside the range or breakout of the range.

A breakout of the 4285 - 4300 trading range has the potential to trigger algo buy or sell programs in the direction of the break. However, with most large traders out of the office for the Christmas holidays we must be on the lookout for false breakout that leads to reversal.

NQ Guidelien For Monday

Driven by the Fed unrelenting buy programs designed to cause massive market rally going into the Christmas holidays, Friday was another rally day for NQ making it the third up day in a row for. 

Whether or not NQ needs a consolidation on Monday before rocketing back up again would depend on where it trades in relation to key price inflection level on Monday morning.

Key price inflection level for NQ on Monday is 4285.

-- Above 4285 is an indication NQ is continuing its fast move up without a consolidation, next resistance is 4320 then 4340. With many stoplosses residing just above 4340 area, buyers would be more than happy to break above 4340 area before taking profit that can cause a pullback or a reversal

-- Below 4285 implies NQ is going into a consolidation mode before resuming its uptrend, as long as any decline does not violated key support.4220. Support zones below 4285 are 4260 and 4240.

NQ Guideline For Friday

On Thursday, massive buy programs by the Fed during overnight trading led to a huge gap-up open, then relentless buy programs that continued all day on Thursday produced another large up-day for all major stock market indices, a second up day in a row.

On NQ there is still some room for an upside move, with the close at 4266 but the next major resistance is not until 4300, on Friday it may need to push into 4300 before pulling back and consolidates.

Key price level for NQ on Friday is going to be 4250

-- Above 4250 is an indication NQ is still in a fast mode up, next resistance is 4300. A clear and sustained break above 4300 could cause another large upday on Friday. Failure to break above 4300 could result in a pullback down move, a consolidation.

-- Below 4250 implies NQ may go into a pullback mode. It needs a clear break below 4210 in order to potentially trigger algo sell programs, next support is 4170.

NQ Guideline For Thursday

After days of heavy selling, the Fed buyers were finally able to trigger an up-day on Wednesday. All major indices closed in the green. 

There should be a follow-through up-day on Thursday, unless of course the global credit contraction is extremely severe. Failure to again close in the green on Thursday is an indication the global market is in serious trouble, implies the market is in a "crash" mode, and should be sold.

Key price level to watch for on Thursday is 4170 in NQ.

-- More short-covering above 4170, next resistance is 4200 then 4215 which is a strong resistance. breaking 4215 could quickly take NQ up to 4250.  

-- Staying below 4170 is an indication that NQ is going back down, first support is 4130. Breaking below 4130 is likely to trigger algo sell programs, targeting a re-test of Wednesday low.

NQ Guideline for Wednesday

American trade war against Russia specifically by collapsing the crude oil price in order to hurt the Russian economy is quickly backfiring and beginning to collapse the entire global financial system, including the US themselves.

Monster buy programs by the Fed soon after the open on Tuesday designed to trigger short-covering rally, failed to reversed the downtrend as NQ got sold-off hard in the afternoon and into the close, another liquidation day in the market.

Unless the FOMC announcement on Wednesday has something that the market has not priced in, look for another selloff day.

Key price level for NQ on Wednesday is 4100.

-- Above 4100 is an indication NQ is not in a freefall.

-- More liquidation below 4100

NQ Guideline For Tuesday

Massive buying binge in the equity futures market on Sunday night that led to a huge gap-up open on Monday failed to trigger a short-covering rally as reality quickly sets in soon after the open as sellers started to sell both the equity market and the crude oil market. 

NQ dropped over 90 points from the early morning high before bouncing back up, but afternoon selloff dropped NQ back down to near the day low, setting up another bearish day or a pullback-up day, depending on where NQ trades soon after the open.

Key inflection price level for NQ on Tuesday will be 4165.

-- Above 4165 is an indication NQ may either trade sideways or trade upward to re-test key resistance level 4185. Failure to clearly break 4185 could attract seller that could tank NQ back down to lower low below Monday's swing low. NQ would need to clearly break above 4185 to trigger short-covering rally, higher resistance are 4200 and 4215

-- Bearish below 4165, but NQ needs to clearly break below Monday's swing low to trigger another round of liquidation sell-off, next support is at 4100.

NQ Guideline For Monday

On Friday, monster buy programs by the Fed triggered right at the open designed to trigger short-covering rally, failed to reversed the downtrend as NQ got sold-off hard in the afternoon and into the close.

NQ is now approaching oversold conditions on both the daily chart and the 60-minute chart. Whether or not it would lead to an oversold bounce on Monday only time will tell, but during a strong trending move, the market can stay oversold for an extended period of time, so it is just something to watch out for.

Key inflection price level for NQ on Monday is 4220.

-- Below 4220 is an indication NQ is still in a fast mode down, with the next support at 4170, but the enxt strong support is at 4100.

-- Breaking back above 4220 implies a larger pullback-up is likely to happen, with the next resistance at 4245-4250. If NQ can break and stay above 4250 it is likely to trigger short-covering rally, next resistance is 4300.

NQ Guideline for Friday

On Thursday, with crude oil continuing it fast decline breaking below $60 in the morning, triggering global credit contraction, although buying binge by the Fed algo buyers in the morning managed to rocketed NQ up over 55 points from the opening low, to re-test Wednesday's swing high before selling pressure overwhelmed the buyers, causing NQ to dropped back down to just below morning low, essentially wiping out all the morning gain.

As long as Crude oil continues its descend the market will continue to be under severe pressure as global credit would continue to contract with declining oil prices, if so, be on a lookout for a stock market "Crash"

Key price level for NQ on Friday will be 4220

-- A break below 4220 could trigger algo sell programs, next support is at 4175 but strong selling pressure could easily drive NQ down to 4100.

-- If NQ is able to stay above 4220 support it could either rally back up again or simply trade sideways.

NQ Guideline For Thursday

On Wednesday with the crude oil price continuing its selloff, the market was bearish and primed for major decline, which it did in the afternoon, after a choppy sideways consolidation pattern in the morning and into lunch. NQ has re-tested the Monday's low, and unless it can substantially rally on Thursday, NQ selloff may even accelerate.

Key price level for NQ on Thursday will be 4245.

-- Above 4245 selling in NQ may at least be temporarily put on hold, next resistance is at 4260, then 4280 and of course 4300.

-- Bearish below 4245, but unless it can break below 4220 look for sideways action on Thursday. Breaking below 4220 could trigger another round of algo sell programs, supports are at 4175 and then 4100.

NQ Guideline For Wednesday

On Tuesday, with global stock market selling off hard overnight and the US stock market about to open with a huge gap-down and ready to crash, the Fed was ready to intervene with monster buy programs to push the market up.The intervention is not without cost, as the gold market, sensing that the Fed is going to pump in massive liquidity, gold rallied big, clearly breaking above 1200 key resistance price level, and may be ready to trigger more short-covering.

With intense selling pressure it took the Fed about 90 minutes after the opening bell to stabilize the market and rocketed the indices up all day into the close.

Whether or not the attempted global market crash has been prevented, at least for now, only time will tell, but the global stock market and bond market crash is coming. This time around, the governments are all too broke to bail the market out.

Key inflection price level for NQ on Wednesday is going to be 4300 again.

-- More rally above 4300 with the next resistance at 4325

-- Bearish below 4300 but NQ needs to break below 4280 to trigger another round of algo sell programs. Lower supports are 4260, 4242, 4220, 4200.

NQ Guideline For Tuesday

On Monday,a fter rallying up to key resistance soon after the open, NQ reversed down and tank hard breaking several support zones before stalling at 4260 support. 

Late afternoon NQ rallied back up to broken key support 4280 now key resistance, which will be NQ key price inflection level on Tuesday.

-- Above 4280 is an indication NQ is going back up, next resistance 4300. A break through 4300 target 4325 resistance.

-- Staying below 4280 could attract short-sellers back. If so, NQ should re-test Monday's swing low. A clear break below Monday low could trigger another round of algo sell programs.

NQ Guideline For Monday

Another sideways choppy day for NQ on Friday, even after the released of the employment report. Unless NQ can get pushed out of the current trading range between 4280 as key breakdown support level and 4325 as key breakout resistance level, the choppy narrow-range trading pattern should continue.

Inflection price level for NQ on Monday is 4315

-- Bullish above, with key resistance at 4325. Without a sustained break above 4325, any breakout could cause a reversal back down to support.

-- Bearish below 4215, with first support at 4300. A clear break below 4300 could trigger algo sell programs, next support, which is a key support is 4280

NQ Guideline for friday

Another narrow range choppy day for NQ on Thursday, it may be ready to make a move out of the current range, perhaps after the release of the employment report on Friday morning.

The current pattern is a bear flag on the 60-minute chart, implies the next leg should be down. However, because we are dealing with a manipulated market, the pattern could fail, and that in fact, we get a rally instead if the Fed buyers come in aggressively. However, since Friday tends to be choppy, we may get another choppy day again tomorrow.

Key inflection price level for NQ on Friday will be 4305

-- NQ is bullish above 4305, but it would need to clearly break above 4330 to trigger algo buy programs.

-- Bearish below 4305 but it would need to break below 4285 to potentially trigger algo sell programs.

NQ Guideline For Thursday

Another choppy sideways consolidation day for NQ on Wednesday. Unless NQ can break below 4285 and trigger algo sell programs, we could see another choppy day again on Thursday.

Key price level for NQ on Thursday will be 4305.

-- Above 4305 is an indication NQ may continue to rally in a very slow choppy way.

-- Bearish below 4305 but NQ would need to break below 4285 to trigger algo sell programs to cause a fast liquidation decline, if so, next support levels are 4250, 4225

NQ Guideline For Wednesday

After a large down day on Monday, Tuesday was a narrow-range consolidation day, a setup for a breakout move, either up or down, possibly on Wednesday. The breakout direction (if it breakout) would depend on where it trades on Wednesday.

Key price inflection level for NQ on Wednesday is 4305

-- Bullish above 4305, and it needs a clear and sustained break above 4315 to trigger algo buy programs, resistances are 4330 and 4350.

-- Bearish below 4305, key support is 4285. A clear break below should trigger another round of algo sell programs , supports are 4250 and 4225..

NQ Guideline For Tuesday

On Monday, NQ opened and sold off hard, dragged down by a massive selloff in a high flying stock Apple Computer AAPL which got hit by massive algorithm sell programs right from the opening bell.. 

NQ tanked hard until the Fed buyers managed to hold the decline with massive buy program. NQ traded sideways the rest of the day. At the close, it looks set for another potential large selloff on Tuesday -- unless of course the Fed come in with massive buy programs overnight or soon after the open on Tuesday.

Key price level for NQ on Tuesday will be 4285 strong support

-- A sustained break below 4285 is likely to attract another round of potentially massive algo sell programs, with the next support at 4250 and then if that does not hold, 4225 is the lower support.

-- Trading above 4285 should keep the algo sellers at bay, but NQ needs a sustained break above 4300 to trigger a short-covering rally, with the next resistance at 4320, 4330.

"Panic Selling" Saudi Stocks Crash Into Bear Market Following OPEC Decision

It's not just Shale oil stocks in the US that are hurting. Following the OPEC decision to not cut production and squeeze US producers, Saudi Arabia's major stock market index has tumbled into a bear market territory, giving up all the year's gains. 

As one analyst noted, "investors are afraid if oil stays where it is, it will negatively impact the government revenues, thus creating potential headwinds on government spending." 

 

NQ Guideline For Monday

After a brief rally in the morning on Friday NQ sold-off into the early close as trader took profit ahead of the weekend.

Although the market is in extreme overbought territory on the daily chart and vulnerable to a fast sell-off, as logn as it does not break key support, the uptrend should continue.

Key price inflection level for NQ on Monday is 4340, key support for NQ on Monday is 4320.

-- Above 4340 is an indication NQ is going to higher high before pulling back.

-- Below 4340 implies NQ is in a pullback mode, first support is 4320. As long as 4320 is not clearly violated it shoudl resume its uptrend.

-- A clear break below 4320 is likely to trigger algo sell programs that can tank NQ quickly down to the next support level of 4300

As global recession intensify, and OPEC not willing to cut its crude oil production in response to declining global demand, look for crude oil price to tank down to $30 - $40 very quickly, resulting in accelerating global credit contraction, and also look for prices of gold and other metals and commodities to tank as well. 

Global stock market collapse (crash) is not far away.

NQ Guideline For Friday

With most traders and investors away from their trading desk for the Thanksgiving holidays and as the only major trader in the market is the Fed algo buying machine, unless the impact of the OPEC decision is negatively overwhelming, the uptrend should continue.

The market is currently in deep overbought conditions and could be vulnerable to unexpected sharp sell-off. However, until we see some evidence of a sell-off, look to stay on the buy side.

NQ Guideline For Wednesday

On Tuesday, NQ opened and railed briefly above 4300 resistance before pulling back down below it and then traded sideways the rest of the day.

With most traders out of the office for the Thanksgiving holidays Wednesday;s trading could be a repeat of Tuesday's price action, a flurries of activities in the morning followed by sideways choppy action most of the day.

Key price level for NQ on Wednesday is 4280.

-- Bullish above 4280, next upside target is a break above Tuesday's swing high.

-- There could be a flurry of selling activities below 4280 with the next support at 4260.

NQ Guideline For Tuesday

On Monday, NQ opened with a gap-up, then immediately rallied above key price level 4265 triggering whatever shorts there was to cover, which is not many, but relentless buying by the Fed High Frequency Trading Machine managed to slowly but steadily push NQ into another higher-high, in the process nullifying last Friday's reversal day.

Without any major sell-off, the Fed is going to continue to push the equity market up, including NQ into the Thanksgiving holidays.

Key inflection price level for NQ on Tuesday will be 4277, Key Support is 4260

-- Above 4277 is an indication NQ is still in an uptrend before pulling back down, next target is 4300.

-- Trading below 4277 implies NQ is going into a pullback-down mode, with key support at 4260. As long as 4260 is not clearly violated on a pullback-down move, uptrend should continue. Although not expected, a clear break below 4260 could trigger algo sell programs, lower supports are 4250 and then then 4235.

NQ Guideline for Monday

Relentless buying by the Fed on Thursday night designed to cause a huge gap-up opening on Friday that would trigger a short-covering rally, failed miserably on Friday, as the market opened and sold-off hard, resulted in a reversal day, without additional buying binge by the Fed on Monday, we could see another strong sell-off day on Monday.

Key price level to watch for on Monday is going to be 4245 for NQ.

-- A sustained break below 4245 could trigger another round of selling algos, supports are 4225 then 4195-4205

-- Trading above 4245 is bullish but NQ needs to break above 4265 to potentially trigger algo buy programs.

NQ Guideline For Friday

On Wednesday, with a bearish mood going into the open, and not willing to let the rally failed heading into next week Thanksgiving holiday, the Fed was ready with their buy programs, in the amount whatever it takes, to push the market up.

NQ opened just above its prior day low, and then after dropping down to support just below prior day low, the Fed buy programs kicked in, designed to panic the short-sellers, which it did, rocketing NQ up through several resistances before stopping just shy of making a new higher high. 

It then traded sideways the rest of the day, setting up a likely break above the high on Friday. Whether or not a break above the high would cause a trending up day on Friday only time will tell, but Friday tends to be choppy sideways type of day because traders, as always, clear their trading books going into the weekend.

Key price level for NQ on Friday will be the recent high 4248 area.

-- IF NQ can break and stay above 4248 area on Friday it could cause a flurry of short-covering as stoploss gets hit. Whether or not it could attract real buying activities after the flurries is over, it is difficult to predict, only time will tell, but there is really not many buyers at this price level except the Fed.

-- On the other hand, breaking below 4235 could trigger some allgo sell programs that could take NQ price down to the next support level 4225. It would need to clearly break below 4225 to trigger major algo sell programs that has the potential to take NQ down to 4195-4200 support area.

GOLD Daily: After completing a clear 5-wave decline from it high in July 2014, gold has now ralled back up to prior low, now-resistance, and if it can stay above 1185 area, gold December contract may be able to break through its resistance, with its first target between .382 to .50 Fibonacci retracement level (1280 to 1245) before pulling back down.

NQ Guideline For Thursday

On Wednesday with NQ opening below key inflection price level, the first morning trend was down. However once the downtrend has ended, NQ rallied back up to FT Pivot before trading sideways into the close. 

With NQ closing right at key inflection price level for Thursday the stage is set for either a decline down to support or rally back up to resistance.

Key inflection price level for Thursday will be 4225.

-- Trading below 4225 is an indication NQ is going down to re-test Wednesday swing low or to a lower low below Wednesday swing low, supports are 4195-4200

-- Above 4225 implies NQ is resuming its uptrend, and likely going back up to above Tuesday's high.

NQ Guideline For Wednesday

On Tuesday, NQ opened just above its balance point then rallied up to higher-high before pulling back down to re-test its breakout level before rallying back up again to another higher high, with a small profit-taking decline near the close.

On the 5-minute chart, NQ has rallied 5 waves up from its Monday's swing low into Tuesday swing high. At the end of the day on Tuesday NQ may have completed its 5-wave rallied, and if so, it should now retraced a certain percentage of the entire 5-wave rally before heading back up again.

Key price level for NQ on Wednesday is going to be 4240.

-- Trading below 4240 on Wednesday morning is an indication the 5-wave rally has ended and that it is going into a retracement mode likely in the form of an ABC wave pattern down. First support is 4225. If 4225 holds, NQ should continue to rally to another higher-high. Clearly breaking below 4225 could take NQ price down to 4195-4200 support.

--  Staying above 4240 implies the current 5-minute uptrend is still in progress, next target is another higher high, likely to 4275.

Guideline For Tuesday

On Monday, after trending/dropping down to support in the morning, NQ rallied back up to balance price level 4210 and then spent the rest of the afternoon trading around balance price level, unable to move away from it, then close just above 4210.

NQ daily chart is still in an uptrend but the 60-minute chart is showing a possible pullback down move, so NQ could go either way on Tuesday, depending on where it trades in relation to its balance price level.

Key balance price level / inflection price level for Tuesday will still be 4210.

-- Trading above 4210 is an indication that NQ may want to rally up to resistance, 4227

-- NQ will have a bearish bias below 4210, first support is 4195, strong support is 4175

NQ Guideline For Monday

A choppy sideways consolidation type of day for NQ on Friday, with a slight bullish bias, but remained inside Thursday's trading range, setting up a bigger move, either up or down..

 Key support price level for NQ on Monday is 4210.

-- Bullish above 4210, the next target is a break above Thursday swing high, likely to 4240-4250 depending on how bullish the market will be.

-- Below 4210 is an indication that NQ is going into a bigger pullback-down mode with support at 4195-4200. If that support zones does not hold, the next support is 4175, a strong support. It would need a very bearish market internals to clearly break the 4175 support area.

NQ Guideline For Friday

On Thursday NQ opened above 4200 resistance triggering some short-covering rally that lasted several for hours. However, without sufficient new buyers to keep the uptrend going, profit-taking quickly set in tanking NQ back down to retest 4200 now support before bouncing back up to retrace .786 of the drop, setting up a C-wave decline back down to below early morning low, ABC 1:1 down move.

At the completion of the C-wave down, NQ then spent the rest of the afternoon rallying in a choppy manner back up to retraced .618 of the entire ABC decline, setting up either a continual rally on Friday, to higher high above Thursday swing high, or dropping back down for a larger C-wave.

Where it trades on Friday morning would determine which direction NQ is going to trade, i.e. up to higher high above Thursday's swing high or down to lower-low below Thursday swing low.

Key inflection price level for NQ on Friday is 4210

-- Above 4210 is an indication that NQ is likely to trend back up again, next upside target is a break above Thursday's swing high.

-- Trading below 4210 implies NQ is either re-testing Thirsday swing low, or going down to a lower low below Thursday's swing low for a larger C-wave down to 4175-80 support area.

NQ Guideline For Thursday

Another slow up-trending day again on Wednesday. As long as pullback-down does not clearly violate key support level, the uptrend should continue to higher-high. 

However, NQ is now approaching whole number resistance at 4200 where traders may take profit, which has the potential of causing a larger pullback down move.

Key support for NQ on Thursday is 4180.

-- Above 4180 NQ is likely going to make another highe-high above Wednesday's swing high, with the next resistance at 4200.

-- A clear break below 4180 is an indication NQ is going into a larger pullback down move, support are at 4160, 4135.

NQ Guideline For Wednesday

Another choppy narrow range up-trending day again on Tuesday. Without any larger pullback the uptrend is going to be slow, narrow-range and choppy, unless of course the Fed can come in with large buy programs. With most short-sellers on the sideline there are not many shorts to cover that could help push the market higher in a hurry.

Key support for NQ on Wednesday is 4170.

-- Uptrend should continue if NQ can stay above 4170.

-- Clearly breaking below 4170 is an indication NQ is going into a larger pullback-down mode. If so supports are 4160, 4135.

NQ Guideline For Tuesday

Another very choppy narrow-range up-day for NQ on Monday. The pattern should continue unless the Fed can come in with large buy programs and triggers more short-covering rally.

Key price support level for NQ on Tuesday is 4160.

-- More rally above 4160, next target is another higher-high above Monday swing high.

-- Possible larger pullback below 4160. If so, the next support is 4135. As long as there is no major unexpected market-moving news, 4135 support should hold.

Guideline For Monday

Friday was another choppy sideways consolidation day, the sixth in a row. Without any new buyers the market is going to continue to trade sideways, and as long as NQ stays above 4100, sellers are going to be on the sideline, so it is up to the Fed to buy the market and push the market up.

Key inflection price level for Monday is 4155, resistance is 4175, support is 4120. Key support is 4100.

Guideline For Friday

Another sideways consolidation day on Thursday, the 5th day in a row, and remained above support. NQ rallied in the afternoon into the close, likely ready to rally back up above prior swing high established on Monday.

If so, and whether or not a breakout above Monday's swing high would lead to a trending-up move, only time will tell, as the market is highly manipulated, and anything is possible.

A breakout above has the potential of triggering a trending move up, next upside target is 4200. 

A breakout that does not hold implies a reversal back down to 4150 - 4160 area.

Key price inflection level on Friday remains at 4150, and it is currently a support price level for NQ as it closed above 4150 on Thursday.

Guideline for Thursday

On Wednesday, NQ opened with a gap-up above the high, Monday's swing high, then immediately sold off, dropping down to support before consolidating sideways into the close.

The market looks tired and seems ready to sell-off for a few days or longer, but as long as 4100 support holds, the uptrend should continue.However, breaking down below 4100 is likely to trigger massive algo sell programs, next strong support is 4000.

Key price level for NQ on Thursday is 4150.

-- Bullish above 4150, next target is a break abve Wednesday swing high.

-- Bearish below 4150, but the next support is at 4100. Only a clear and sustained break 4100 could lead to a trend reversal from up to down on the daily chart, next support is 4050, then 4000.

Guideline For Wednesday

On Tuesday, NQ opened with a gap-down to support and then rallied back up to close the gap before reversing back down, breaking below key support. After finding support at just above prior swing high, NQ spent the rest of the day rallying back up, closing in the middle of the trading range. 

With the mid-term election over, the market can now make another trending move, with the Republican party winning both the house and the senate, the direction is likely to the upside, but, as always, anything could happen, so be ready for a trending move up or down.

Key price inflection level for NQ on Wednesday is 4150.

-- Trading above 4150 is likely to trigger algo buy programs. If so, next upside target is a break above Monday's swing high to 4200.

-- Bearish below 4150 but support remains at 4120 and 4100. 

Guideline for Tuesday

NQ traded sideways in a very narrow trading on Monday, a consolidation day following a large gap-up day. Once it ends NQ should rally back up again, as long as key support hold on any potential further pullback-down move.

Key inflection price level for NQ on Tuesday is 4163.

-- Above 4163 is an indication uptrend has resume, target is higher-high above Monday swing high, upside target is still 4200.

-- NQ is still in a pullback mode below 4163, key support is 4135. Should 4135 support is clearly broken, it is likely to trigger algo sell programs that could take NQ down to 4115 or 4100 support.

Guideline For Monday

On Friday last week, on the back of the Fed's back-door QE via the Bank of Japan QE and massive overnight buying binge by the Fed algo buyers, the stock market was pushed up substantially higher by the opening bell while precious metals such as gold and silver were whacked really hard, just to paint a healthy economic outlook post QE.

With the US mid-term election this coming week it is a certainty that the Fed would continue to push the equity market up while whacking the precious metal market down, and they will come in to buy any attempted sell-off attempt by the short-sellers. As long as no major technical damage is inflicted by the sellers, look for the current uptrend to continue.

Key price inflection level for NQ on Monday will be 4145, key support is 4135, strong support at 4100.

-- Above 4145 is an indication NQ is still in a fast mode up, next target will be 4200, whether it will get there in one day or two only time will tell.

-- Trading below 4135 could trigger algo sell programs, but strong support resides at 4100, and should hold. But as always, anything is possible, particularly with the extremely manipulated market conditions we are currently in.

Guideline For Friday - NQ

On Thursday the market opened with a bearish bias, but relentless buying by the Fed buy programs pushed the market up, NQ just stopped shy of the prior swing high before seller came in and sold it hard, but another rounds of buy programs managed to push NQ back up to close near the high of the day.

With the Fed determined to hold the market up just to show that ending QE would not harm the market look for the buy programs to come in on any attempted sell-off. Whether or not they are able to hold the market up and even push it higher and higher, against global credit contraction, only time will tell.

Key price level for NQ on Friday is 4100.

-- Trading above 4100 is bullish, look for NQ to continue going higher.

-- NQ may try to sell-off again below 4100, supports are 4060, 4045, 4025.

Guideline For Thursday

NQ traded sideways on Wednesday and stayed choppy even after the FOMC minutes was released, but it looks ready to make a sustained trending move from here, the direction is still not clear simply because the market is manipulated and the Fed will continue to buy the market against strong selling pressure as global credit contraction continues to intensify.

Key price level for NQ remains 4080.

-- Bullish above 4080, next resistance is still 4115. A false-break could cause a fast reversal back-down, while a sustained break above 4115 could trigger a sustained short-covering rally

-- Bearish below 4080, supports are 4065, key support is 4040-4045. Trading below 4040 is an indication the uptrend may have reverse, and could potentially drop really fast, if so first target down is 3940.

Guideline For Wednesday

On Tuesday NQ opened with a large gap-up that successfully triggered a short-covering rally lasting all day into the close, with small lunch pullback.

On Wednesday, ahead of the FOMC policy announcement in the afternoon anything can happen, but the normal pattern ahead of the FOMC announcement is usually choppy with a slight bullish bias. 

However, Wednesday FOMC announcement is not a normal one, the big decision is whether to end QE or not to end QE. But whatever their decision may be, the Fed would be ready to support the market with buy programs.

Key inflection price level on Wednesday will be 4080

-- NQ should continue to rally above 4080, next resistance to break is 4115 swing high.

-- Trading below 4080 is an indication NQ is going into another pullback mode, key support is 4045. A sustained break below 4040 could trigger algo sell programs, next support is 4025 and 4000.

Guideline For Tuesday

On Monday, NQ traded sideways, slightly to the bullish side, ahead of the FOMC policy decision announcement on Wednesday, still unable to clearly breakout above 4040 key resistance zone. 

Whether or not it would breakout before the FOMC announcement on Wednesday, only time will tell, but the momentum of the current rally is slowing down, and it could be a setup for the next breakout to the upside or a prelude to a larger pullback down, so going forward the key price level is still 4040.

The Fed would likely be ready with major buy programs after their policy announcement, in which case the market would spike higher breaking above breakout level, unless of course their buy programs get overwhelmed by the sellers.

Cycle high on the daily chart will be on Thursday October 30th this week, the day after the FOMC announcement, and it could produce a spike high followed by a fast reversal down. Failure to produce a reversal is bullish, and could produce a sustained fast move to the upside.

Key price level remains 4040.

-- A sustained breakout above 4040 could trigger short-covering rally targeting a test or a break of the 4115 swing high on the daily chart.

-- Failure to break and stay above 4040 could attract short-selling, supports are 4020, 4000, 3980, 3940

Guideline For NQ on Monday

Relentless buy programs by the Fed engineered to squeeze the shorts continued on Friday, with NQ closing at the day high of the day at around triple-top price zone (October 3 & 8 high).

There should be many stoploss hiding just above 4040 triple-top price level, a very tempting level for the buyers to push above those level inorder to trigger another round of short-covering rally. At the same time, 4040 is certaintly a strong resistance level that has the potential to halt the current rally and reverse price back down.

So, for Monday 4040 will be a key price level to watch for.

--  Above 4040 is likely to trigger short-covering rally, next target us is September 19 swing high, 4115 area.
-- Inability to break and or stay above 4040 area could attract some short-sellers, supports are 4000 and 3980.

NQ Guidelne For Friday

NQ opened with a huge gap-up on Thursday morning, rallied up to the .786 retracement level, a 7-wave rally from the recent low, before stalling and pullback down to 4000 support..

Absent any major buy programs from the Fed, NQ should continue to drop down further on Friday to support 3975-3980, if that does not hold, then down to 3930-3940. 

However, a sustained break above 4025 could trigger another round of short-covering rally, targeting September 19 swing high.

Guideline For NQ on Thursday

On Wednesday, NQ finally had a pullback down day, ending a 4-day rally from October 16 swing low. The rally from last week Thursday low into Wednesday swing high had a 5-wave structure on the 60-minute chart. 

Whether or not NQ will get more than a 5-wave structure (rally), only time will tell, but to do so, NQ would need to stay above 3930 support in order to avoid overbalancing, and should rally into higher high very soon. Failure to make a higher high could indicate that a larger pullback-down is in progress, implies another wave down is likely.

Key inflection price level for NQ on Thursday is 3960.

-- Above 3960 is an indication that the current uptrend is resuming.

-- Below 3960 implies another down-leg is likely, next support is 3930.

-- Breaking below 3930 is liley to trigger algo sell programs, target down is 3895-3900

Guideline For Wednesday

On Tuesday, as expected, the Fed buy programs caused the markets to open with a huge gap-up, with NQ opening above first resistance and rallied, broke above strong resistance, and continued on to rally all day, again with a close at the high of the day.

The Fed buy programs should continue, with or without a paused, designed to run-over all the trailing stop-losses. However, once all stop-losses has been exhausted, the market will need more than just buy programs and short-covering to continue to push the market higher, the market would need genuine buying interest.

Key resistance to break is now 4000.

-- Failure to clearly break above 4000 could attract short-sellers, support is at 3930.

-- Breaking above could result in another large up-day on Wednesday, next resistance is 4050.

Guideline For Tuesday

With the Fed buy programs in full speed right from the open on Monday NQ trend up all day into the close, a third up days in a row. The rally that started from last Thursday swing low is now in its wave 5 up, and in overbought condition on the 60-minute chart, and may be ready to go into a larger pullback-down mode at any time now, but as long as the drop does not violate key support level, the rally should continue.

The Fed is likely to continue to buy the futures market on Tuesday in order to avoid the repeat of recent market collapse.Whether or not they are able to hold the market up against the backdrop of global credit contraction, only time will tell and it will depend on where it trades in relation to key price level.

For Tuesday key price support level to watch for in NQ is 3840.

-- As long as NQ can stay above 3840 on Tuesday it should continue to go up, next resistance is 3895, if that resistance does not hold, then 3930 - a strong resistance.

-- Breaking below 3840 could trigger algo sell programs that could tank NQ quickly down to 3790

NQ Guideline For Monday

The market posted a 2-day rally last week Thursday and Friday likely due to massive buy programs engineered by the Fed. However, the manufactured Ebola scare is really starting to cause panic in the market that could lead to a massive "Crash"

A resumption of the downtrend on Monday is an indication that the decline is very strong and should take out the recent swing low very quickly.

On the other hand, another rally day on Monday would imply that the market is going into a larger pullback - up mode.

Key price level for NQ on Monday is around 3790.

 -- Below 3790 is an indication the downtrend is resuming, next support is 3730 then 3700.

--  Remaining above 3730 implies NQ is still in a pullback-up mode, resistances are 3840-3850, then 3890-3900

Friday Guideline for NQ

NQ found temporary support at yesterday low as NQ on Thursday consolidated between 3700 support and 3800 resistance all day.

Whether or not NQ will continue to consolidate inside the range on Friday, only time will tell, but a breakdown below 3700 support on Friday is an indication NQ is in a "crash" mode. The market, after having been manipulated by the Fed for so long, is very illiquid, without enough buyers to absorb sell orders, the market is susceptible to crashing.

Key price level for NQ on Friday is 3700 support and 3800 resistance.
-- Staying inside the range implies NQ is in consolidation mode before the downtrend resumes.
-- A sustained break below 3700 is very bearish, as it could ignite another round of algo selling and forced margin liquidation.
-- If NQ can mount a sustained break above 3800, it could trigger some short-covering rally as some traders may take profit going into the weekend.

Guideine For Thursday

On Wednesday the downtrend on the daily chart continued. Vix spiked to multi-year high.

On Wednesday, NQ opened with a huge gap-down then rallied up towards resistance, but was quickly sold-off, NQ tanked hard dropping almost 100 points down to strong support before rallying back up over 100 points to resistance before dropping back down into the close, setting up a doji day on the daily chart.

We can now see that the second downleg has extended over 1.618 of the first downleg, qualifying it as wave 3 down. If so, and if wave 3 down has found support at prior swing high, we should see several days of rally before the next downleg, wave 5 resumes. However, if wave 3 is still in progress, NQ should continue to tank on Thursday.

Key price level for Thursday is 3690.

-- Above 3690 implies NQ has found some temporary support to launch wave 4 retracement. with strong resistance at 3800.Typical target for wave 4 retracement are .382 and .50. The 382 retracement is 3830 and .50 retracement level is 3867.

-- Trading below 3690 implies wave 3 is still in progress and look for more forced margin call liquidation decline.

Guideline For Wednesday

Market sell-off continued on Tuesday, with NQ spotting a familiar intraday pattern, morning sell-off that was followed by lunch rally then afternoon selloff going into the close.

The declining momentum seems to have slowed down on Tuesday, and there are 2 possible reasons for that:

1. It may be slowing down before a snap-back rally going into the weekend, or,

2. A running correction, an indication the market is setting up for a massive selloff once running correctionhas ended.

Key support level for NQ on Wednesday will be 3800.

-- Staying above 3800 implies either a potential rally but NQ needs to trade above 3850 to potentially trigger a short-covering rally. Inability to break and stay above 3850 implies choppy sideways pattern.

-- Breaking below 3800 implies the slowing down of momentum is a running correction. If so, it would be followed by a liquidation decline, next support is 3730 and 370.

Guideline For Tuesday

Monday was the 3rd very large down day in a row for NQ, an indication that the sell-off is impulsive, with markets collapsing worldwide. Australia experience their 2nd flash crash on Monday, Japan and New Zealand had their flash crash a few weeks ago, North American market is not immune to it.

On Monday we saw an early morning sell-off that was reversed sharply, likely by the Fed buyers, that was again sold in the afternoon, with the market again closing at the day low, an indication that the buyers capitulated into the close, a characteristics of forced margin selling.

Key resistance for NQ on Tuesday is 3850.

-- Inability to break and stay above 3850 is going to attack more selling, with the next target down  at 3785. If that support does not hold stronger support lies at 3700 - 3730.

-- Breaking and staying above 3850 target the next resistance at 3900.

Guideline For Monday

The market tanked hard on Friday, including NQ which tanked hard for the second day in a row. Whether or not it is going to tank for the third day in a row on Monday, only time will tell. Keep in mind that forced margin selling could tank the market harder and harder as the decline continues --- Potential Crash Scenario

So far, last Friday swing low measured 1:1 down from September 19 swing high. On the daily chart, whether or not the 2nd down leg is wave C or wave 3 from the high, only time will tell, but the momentum on this 2nd downleg is much stronger than the 1st downleg, an indication that it is likely wave 3 down.

If it is wave 3, the 2nd downleg should continue down much further, usually to the 1.618 or larger extension of the first downleg, then we would see wave 4 bounce to be followed by wave 5 down targeting lower low to complete the cycle.

On the 5-min chart key price level for NQ on Monday is 3900.

-- Below 3900 NQ should continue down, next support below Friday low is 3845 then 3825 double bottom support from July and August low. 

-- If those support does not hold the next support below is 3730 and 3700

-- If for some reason the Fed came back into the market and buy aggressively, we could see some short-covering on a sustained break-back above 3900.

Guideline For Friday

Volatility is back

On Thursday, after closing the opening gap, NQ promptly decline breaking key support level 4020 down to its 50-moving average support before bouncing. 

Although it bounce off its 50-ma on the 5-minute chart to re-test the gap-close price level, it was not able to break above it to change the bearish dynamics as it quickly got sold aggressively resulting in a nice 5-wave decline before consolidating. At the end of consolidation, NQ either continues its downtrend or reverses back up, the key will be where it trades in relation to its key price level area.

Key price level for NQ on Friday will be 3985

-- Failure to break and stay above 3985 is an indication NQ is going to resume its downtrend that started on Thursday, and tank down to re-test Wednesday swing low. Breaking below Wednesday swing low could attract another round of momentum algo sell programs than has the potential to tank the market very hard.

-- Staying above 3985 could trigger another round of short-covering, resistances are 4005 then 4025.

Guideline For Thursday

After trending down in the morning on Wednesday, massive buy programs most likely engineered by the FED, designed to panic short-sellers, rocketed NQ upward, breaking through 2 resistance levels before stalling at double-top with Monday swing high. 

Whether or not most of the short-sellers has covered it is difficult to say, but it seems many had covered in panic on Wednesday, so unless real buyers can show up on Thursday NQ can fall back down again.

Key price level for Thursday is 4020.

-- As long as any pullback down does not clearly violate 4020 support the uptrend that started on Wednesday is still alive, the next resistance is going to be 4050 then 4065.

Guideline For Wednesday

On Tuesday NQ opened with a gap-down below support then rallied back up to re-test broken support-turned resistance, twice, before resuming its downtrend that continued on into the close. NQ is in a down-trending mode on both the daily chart and the 60-minute chart.

NQ was in oversold territory at the close so there may be some pullback in the morning, but as long as pullback does not violate key resistance the downtrend should continue, supports are at 3950 and 3930. NQ may have to break below 3930 swing low before a larger pullback is to be expected.

Key resistance on Wednesday is 3975.

-- Below 3975 is an indication that the downtrend is continuing supports are 3950 and 3930.

-- Breaking back above 3975 implies NQ is in a pullback-up mode with resistance at 4000 then 4025

Guideline For Tuesday

NQ opened with a gap-up above key inflection price level 4025 on Monday but failed to trigger a rally, and instead, NQ promptly reverses and sold-off in the morning, dropping down to 3995 support before pulling back up to resistance, and close right in the middle of the range between 3995 support and 4025 resistance.

NQ is set to make a potentially large trending move on Tuesday, either up or down, depending on where it trades in relation to key support and resistance.

Key support for NQ on Tuesday is 3995, key resistance is 4025.

-- Trading above 4025 could trigger algo buy programs that could propel NQ up to 4050 and  4080.

-- Breaking below 3995 is bearish and could trigger algo sell programs that could tank NQ back down to last week Thursday swing low.

Guideline For Monday

Volatility is currently back, at least until last week Friday, VIX level remained elevated, indicating the market is in a larger swing mode, with NQ swinging fast and furious.

Gold and crude oil continued to tank, an indication that global credit contraction is intensifying, and could, at some point, get out of control and crash the stock market.

On Friday, NQ opened with a gap-up above key resistance which trigger massive momentum algo buy programs that rocketed NQ up to the next resistance zone 4025 before trading sideways into the close.

Key price level for NQ going into Monday trading is 4025.

-- A re-break back above 4025 could trigger another round of algo buying programs, next resistance is around 4060 - 4070.

-- Trading below 4025 implies NQ is in pullback down mode, and as long as it does not violate key support 3990 - 4000, NQ should resume its uptrend that started on Thursday.

-- Breaking back below 3990 could trigger momentum algo sell programs that can tank NQ back down to re-test Thursday swing low. 

Guideline For Friday

On Thursday a strong sell-off in the morning was followed by a strong rally in the afternoon as buyers pushed NQ into higher high above morning high before pulling back down into the close. 

For Friday, as long as pullback down move that started late day on Thursday does not continue down in the morning on Friday and violate key support, NQ should continue to  rally. However, in order for the rally to gain momentum, it has to clearly break above 4090-4095 key resistance and trigger momentum algo buy programs.

-- A break above 4095 should propel the rally leg up to 4025 resistance.

-- Breaking back below 3965 could re-test Thursday's swing low.

Guideline For Thursday

NQ opened with a  gap-down and then trend-down all day with a small profit-taking rally near the close. It was a very wide-range down day for NQ on Wednesday. 

Whether or not we will get another large down day on Thursday really depends on where NQ trades in relation to it key support level.

Key resistance is at 3995, key support level for NQ on Thursday will be 3965.

-- Breaking clear above 3995 could trigger short-covering rally with next resistance at 4025.

-- Below 3995 implies a re-test of Wednesday swing low 3965.

-- A clear and sustained break below 3965 could trigger another round of algo sell programs, next support is at 3910.

Guideline For Wednesday

A gap-up open and an attempted breakout above resistance soon after the open was overwhelmed by sellers that tank NQ down through gap-close before finding support at 4025 key support.

NQ then quickly reversed back up during the normal morning reversal time zone, quickly breaking out above 4060 key resistance to take out stoplosses, but once most of the shorts had covered, sellers came back in to sell NQ back down to near the early morning low before bouncing back up to re-test 4060 resistance nearing the close.

Key price level for NQ on Wednesday is still 4060.

-- A re-break back up above 4060, if it is able to stay above 4060, could this time trigger real buying that can sustained an uptrend and not just short-covering rally which may not last.

-- Breaking below 4025 could trigger a cascade of algo sell programs that could easily tank NQ down to retest the recent swing low, 4000 then 3980.

-- Should 3980 strong support not hold, it is anyone's guess where NQ would find the next support.

Guideline For Tuesday

NQ opened with a very large gap-down to support (4000) on Monday then promptly rallied, trapping shorts who covered in panic that help NQ rocketed up to close the gap very quickly before pulling back down and chop around inside a narrow trading range between 4025 and 4050, setting up a potential fast move -- upward above 4050, or fast move down on a break below 4025.

Resistance above 4050 is 4075 and 4100

Support below 4025 is 4000 then 3980. Should 3980 clearly get broken, NQ could go into a free-fall.

Guideline For Monday

After trading sideways in the morning on Friday the shorts finally covered in the afternoon triggering a short-covering rally until the close, just below 4060 key resistance for Monday.

On a larger time frame, NQ is still stuck inside a choppy trading range on the daily chart, between 4000 support and 4100 resistance. NQ would need to clearly break below 4000 in order to trigger a multidays trending down move to the next major support between 3700 - 3725.  Staying above 4000 is an indication NQ is continuing to chop around between support and resistance.

On the short-term time-frame, the 5-minute chart, key support lies at around 4025 - 4030 on Monday.

-- Above 4025 in the morning on Monday is an indication that NQ is still in an uptrend, with the next resistance at 4060. A clear break above 4060 could trigger momentum algo buy programs, next resistance is at 4090 and 4100.

 -- A sustained break below 4025 implies NQ is going back down to the recent low. Supports are 4000 and 3980.

Guideline for Friday

On Thursday, the threat of Russia's Asset Freeze sent the European and US market reeling, with the Dow dropping down just over 260 point.

NQ opened just below key support 4075 and continued tanking without any pullback, caught many traders off guard. The selloff continued without pausing as it breaks support after support, tanking NQ all the way down to just below prior swing low established on September 16, down to 4000 whole number support before consolidating Whether or not 4000 support holds and can sent NQ back up again, only time will tell.

Key price level for NQ on Friday is 4000.

-- Trading below 4000 could trigger another round of momentum algo, next support is prior swing high on the daily chart, a strong support zone around 3080-3090, if this support zone does not hold NQ could go into a crash mode with the next support is not until 3910.

-- Trading above 4000 implies NQ is either going into a consolidation mode of rally back up. NQ needs to clearly break above 4020 to trigger a short-covering rally. If so resistances are 4035 then 4060

Guideline For Thursday

The first morning trend on Wednesday tried to break-down below support but failed to break and stay below, then reversed back up, running over trapped shorts, easily broken above resistances, trend all day and close near the day high, a bullish momentum into the close, setting up a potential opening gap-up int he morning.

Key price level for NQ on Thursday morning is 4075.

-- Trading above 4075 is an indication the uptrend that started on Wednesday is still in progress, next resistance is 4100, then 4113.

-- Trading below 4075 implies NQ is going into a consolidation or has reversed back down again, first support is 4060. If 4060 support does not hold, NQ is likely to test 4035 support again.

Guideline For Wednesday

A narrow-range sideways consolidation day for NQ on Tuesday following a large trending-down day on Monday, a setup for a strong trending day, likely on Wednesday, the direction would depends on where it trades in relation to key support/resistance levels.

Key price level for NQ on Wednesday is 4035 - support, 4060 resistance.

-- Trading below 4035 is likely to trigger another round of momentum algo sell programs. If so the next support is 4005 double-bottom support, if that does not hold then the next support zone is 3980-3990 prior swing high.

-- Trading above 4035 implies more consolidation with resistance at 4060. Trading above 4060 could trigger momentum algo buy programs. If so, the next resistance is 4075-4080 prior swing low.

Guideline For Tuesday

NQ opened with a gap-down then trend down most of the day with a late day profit-taking rally into the close, setting up potential morning rally into resistance, or a gap-up open and rally into resistance, and if resistance holds, it should then resume its downtrend.

However, if instead NQ opened below support we would likely see more decline as momentum algo sell programs kicked in.

Key resistance on Tuesday is 4070-4075, key support is 4035.

-- As long as 4070-75 resistance holds on any rally, NQ is likely to drop back down towards 4035 support. -- Breaking below support could attract another round of algo sell programs, next downside target is 4005 double-bottom support.

-- Breaking above 4075 could attract short-covering rally, next resistance above is 4100.

Guideline For Monday

A sideways down-day for NQ on Friday. A strong sell-off in the morning that was followed by an afternoon rally.

Key inflection price level for NQ on Monday morning is 4100.

-- Trading below 4100 is an indication that NQ is going for another round of algorithm selling with first downside target at 4065-4070 support. As long as the first support hold, NQ should rally back up to 4100 resistance. 

-- Breaking below 4065 could attract momentum algo sell programs than can tank NQ down to the next support level 4045-4050.

-- Trading above 4100 is bullish, next upside target is a higher high above Friday swing high.

Guideline For Friday

NQ opened with a gap-up on Thursday and then rally up all day into the close, albeit, a narrow range up day. Going into Friday which tends to be a choppy sideways type of day, NQ needs to trade above 4100 and push higher to trigger more short-covering rally.

Trading below 4100, with or without first breaking above 4100 implies NQ is going into a pullback-down mode with supports at 4088, 4065.

Guideline For Thursday

The market traded sideways ahead of the FOMC announcement on Wednesday, then, attempt by the short-sellers to take the market down after the relesed of the FOMC minutes was met with aggressive Fed buying which pushed NQ back up above morning high before short-sellers came back to sell it again.

NQ closed near where it opened created a doji candle on the daily chart, setting up either a rally or a sell-off on Thursday, depending on where it trades in relation to its key inflection price level, 4065

-- Bullish above 4065, resistance are 4085 and 4100

-- Bearish below, supports are 4045, 4030, 4010

Guideline For Wednesday - NQ December Contract

A typical opening gap-reversal day on Tuesday with a small profit-taking decline near the close. With the FOMC policy announcement not until 2:15 pm in the afternoon the market may just chop around until the announcement, and then, depending on whether or not there is going to be any major change in policy, the market may or may not have much reaction.

Key price level for NQ December contract on Wednesday is 4045.

-- As long as NQ does not clearly break below 4045, the up-trending will resume, next resistance is 4100.

-- Below 4045 is an indication that the downtrend resumes, supports are 4030, 4010.

Guideline For Tuesday

The price level I am using here is for NQ September contract. December contract is about 8.00 points lower than the September contract.

NQ opened and sold off hard all morning and into he lunch hour on Monday, stopping right down at 4020 support level before finding support and then bounce  in late afternoon and into the close.

Inflection price level is around 4037. Support for NQ on Tuesday will be 4020 and resistance 4050-4055 area.

-- As long as NQ stays above 4020 support, it either rally or trades sideways. NQ needs to clearly break above 4037 to trigger algo buy programs with upside targets of 4050-4055 resistance.

-- Breaking below 4020 is going to attract another round of momentum sell algos that can tank NQ down to the next support zone 3990.

Guideline For Monday

A slow and choppy decline for NQ on Friday with a small profit-taking rally into the close. 

NQ has been stuck inside a trading range between 4055 support and 4105 resistance with the main activities oscillating between 4060 and 4095. It needs a clear and sustained break out of 4055 - 4105 trading range to cause a trending move.

Key price level for Monday is 4070 for NQ.

-- Bullish above 4070 with resistance at 4095 and 4105.

-- Bearish below 4070 with support at 4055 - 4060 then 4020

Guieline For Friday

NQ trend down to support in the morning and early afternoon on Thursday, but profit-taking ahead of Friday pushed NQ up into just below Wednesday swing high at the close. 

Fridays tend to be a ranging type of day as traders square their books for the weekend.

Support for NQ on Friday is 4075-4080 then 4055-4060

Resistance is 4095 and 4105

Guideline For Friday

NQ tried to break below support early in the morning but failed. Profit-taking bounce turned into a trending upmove as algo buy programs kicked into high gear on a break above the 50-moving average on the 5-minute chart.

Rally continued all day closing at the day high and at key resistance level (4095) for Thursday, setting up a positive momentum into the close. 

Key price level for NQ on Thursday is 4095.

-- A sustained break above 4095 could trigger a rally to above 4105.

-- Failure to stay above 4095 should attract some selling that could take NQ down to 4075 support. A sustained break below 4075 could attrack momentum algo sell programs targeting a test of 4055 support.

Guideline For Wednesday

A wild trading action in the market on Tuesday with NQ opening inside its balance zone, which after a slow morning session was then engineered to drop down below prior day low in order to take out the stop-losses of those holding long positions.

It was then engineered to quickly reversed back up, trapping breakdown sellers, fueling rally engineered to break above prior day high, again, designed to take out the stop-losses of the shorts, after which was quickly reversed back down, this time, dropping down below day low, with small profit-taking rally into the close, setting up a bearish momentum going into the open on Wednesday.

Key inflection price level for Wednesday is again, 4075 area for NQ.

-- As long as NQ stays below 4075 NQ will remains in a bearish mode, a clear and sustained break below 4055 support should trigger another round of algo selling programs, next support is 4040-4045, then strong support at 3090

-- A sustained break-back above 4075 should trigger another round of algo buy programs, resistance is at Tuesday's swing high.

Guideline For Tuesday

After a brief early morning counter-trend rally into resistance, NQ reversed and trend down into support in an ABC wave pattern. Late afternoon rally pushed the closing price into the middle of the range, setting up a a neutral close.

On Tuesday, depending on where NQ trades in relation to its price inflection level,  4090, we would see either a re-test or a break of Monday's high or low. If there is a break, a possible trend out of the range in the direction of the break, or a reversal after a break.

Key Resistance is 4105

Key Support is 4075

Guideline For Monday

On the daily chart, NQ had a 2-day pullback down days on Wednesday and Thursday last week. On the 60-min chart, it was a clear ABC zig zag 1:1 retracement that was reversed after making a lower-low on Friday morning, as can be seen on the chart below.

After making a lower-low to end the 5-wave decline from Thursday high, NQ rallied all day on Friday in a 5-wave sequence (chart below)

Key inflection price level on Monday is 4080.

-- Bullish above, targeting a break above Wednesday/Thursday swing high.

-- Bearish below 4080, target a re-test of Friday swing low or a break below Friday swing low.

Guideline For Friday

Following ECB's QE announcement NQ quickly rallied up to resistance, after failing to make a higher-high above yesterday high, quickly reversed back down crashing below support and closing near the day low, making Thursday a second down-day in a row.

It is likely the top is in, and pullback is in progress. If so, NQ should continue to decline, first breaking below support on the daily chart which is at 4055, down to 4020.

Key price level for NQ on Friday is 4083.

-- As long as rally can stay below 4085 NQ should resume its selloff, next support is 4055 then 4020.

-- Breaking back above 4085 is likely to trigger a short-covering rally, targeting the recent swing high.

Guideline For Thursday

Pushing against resistance and in extreme overbought territory on the daily chart, on Wednesday NQ opened with a gap-up above prior day high, but, instead of the usual small pullback in the morning followed by a rally, NQ crashed through key support triggering momentum algo sell programs, then closing not far up above day low - setting a tone for more selling on Thursday.

Key inflection price level for NQ on Thursday is 4085.

-- Staying below 4085 is an indication NQ is still in down mode, supports are 4060, 4050, 4020

-- Trading back above 4085 is likely to trigger short-covering, with algo buy programs targeting a break above Wednesday swing high.

Guideline For Wednesday

On the daily chart, NQ is in wave 5 of 5 up as can be seen from April pullback swing low, currently pushing against resistance and in overbought territory. Although momentum is slowing down, NQ is still in a strong up trending mode, see chart below.

On Tuesday, after opening with a gap-up above Friday's swing high and then re-testing 4075 support, NQ rallied back up to re-test the morning high, a choppy narrow-range up-day on Tuesday.

Ahead of the ECB policy decision on Thursday, widely expected to announce a massive QE, the usual pattern of choppy narrow-range rally days may continue until Thursday, as long as there is NO unexpected major pullback that violates technical support.

Key support for NQ on the 5-minute chart, on Wednesday is 4083.

-- Bullish above 4083 with next upside target above Tuesday swing high..

-- Trading clearly below 3083 implies a larger pullback, with next support down at 4075., then 4060.

Guideline For Tuesday

The equity market badly need a major pullback down move to attract algos back into the market, simply because a slow & choppy  narrow-range uptrend is not very attractive for the big algos. Without a major pullback down move the current slow choppy narrow range uptrend is going to continue.

Key inflection price level for NQ on Tuesday is 4075.

-- Above 4075 NQ should continue to slowly chop upwards.

-- Bearish bias below 4075. First support is 4060, then 4050, 4030

Guideline For Friday

Another choppy narow range low voluem day on Thursday. On Frday ahead of the loong labout day weekend the market tends to be choppy and narrow range as most traders are off for the long weekend.

Absent any unexpected even the choppy narrow range pattern should continue on Friday. Inflection price level for Friday is 4070.