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.

Guideline For Thursday

NQ again traded sideways in a very narrow trading range on Wednesday on very low volume. 

Absent any buyers except the Fed HFT trading machine designed to keep pushing the markets higher, and absent any short-seller until the Fed gets out of the way, the current pattern of very choppy and narrow range day is going to continue, unless the conditions change.

Key inflection price level for Thursday is 4070 in NQ.

-- Next upside is 4100

-- First support is 4060

Guideline For Wednesday

Another slow choppy very narrow-range low volume up day for NQ on Tuesday because without a decent pullback down there is no new buyers to buy and no short-sellers to cover to cause a strong upmove, as the only buyer in town is the Fed HFT machine programmed to keep the market up into the long labour day weekend.

Absent any big sellers the market may continue to chop higher into the weekend.

Key inflection price level for NQ on Wednesday is 4070.

-- Bullish bias above 4070 with the next target up is a break above Monday's swing high, next whole number resistance is 4100.

-- Below 3970 it may drop down to the next support zone 4060 the 4050.

Guideline For Tuesday

On Monday, NQ opened with a gap-up to another higher-high on the daily chart, then after a choppy early morning rally, profit-taking set-in droppign NQ down to support before bouncing back up to re-test the opening price from below.

NQ market looks tired and may be ready for another pullback-down day before rallying for the long lanour day weekend.

Key inflection price level for Tuesday is 4060.

-- Staying above 4060 is an indication NQ is going to make another higher-high above Monday's swing high before pulling abck down.

-- Trading below 4060 implies NQ is going into a larger pullback-down mode, next support is 4045-4050.

Guideline For Monday

A sideways consolidation day for NQ on Friday. With the S&P 500 Futures (ES) just breaking out above its prior swing high (July high 1985 area) during this coming week, ES either rocket up if short-covering is triggered which should drag all the other major indices with it, or it pullback down dragging all the other indices down with it, which is it going to be we have to wait for this coming week. Key price inflection level on the daily chart for the ES is 1985 -- bullish above it, bearish below it.

NQ key price level for Monday is 4050.

-- Looking for more rally above it, a choppy rally or a strong rally if short-covering can get triggered in the ES market.

-- Trading below 4050 may trigger a long overdue pullback, with first target down of 4020-4030 area support. As long as 4020-4030 support hold, we should see another higher-high.

Cycle top on the daily chart is expected to occur during the week of September 1 for a larger daily pullback, expected to be a multi-months pullback ahead of the annual year end santa clause rally.

Guideline For Friday

Another choppy very narrow range day for NQ on Thursday. Without any new buyers and without any more shorts left to cover, the only buyer left is the Fed HFT trading machine hard at work to make sure the market does not sell-off while the Fed meets in Jackson Hole.

Last week Friday the market had a very large sell-off in the morning followed by afternoon rally that continued all week this week.

We could see the same pattern repeated tomorrow Friday, sell-off in the morning followed by a rally.

Key inflection price for Friday is 4040

-- Continued choppy small range rally above 4040.

-- Sell-off below 4040, first support is 4020, then 4000.

Guideline For Thursday

NQ made another higher-high on Wednesday but traded sideways in a very narrow trading range, and looked ready for a larger pullback down. However, due to the currently extreme bullish market condition any pullback may get bought very quickly unless it is accompanied by bearish market internals.

Key price level for NQ on Thursday is 4035.

-- Staying above 4035 implies NQ is still in rally mode, next target is still 4050-4060

-- Breaking below 4035 could run-over some trailing stioplosses that could quicky tank it down to the next support 4020. It would take some extreme bearish internal to clearly break below 4020. If so the next support is 3990

Guideline For Wednesday

Another very narrow-range short-covering up-day again on Tuesday. Without any buyers left except for the Fed themselves, and without any shorts left to cover, the markets continued to rally very slowly. 

Without any pullbacks the pattern of slow and choppy narrow-range rally type of day should continue, next upside target for NQ is still 4050-4060, a major target zone that could attract some profit-taking selling.

NQ key support for Wednesday is 4015-4020.

Guideline For Tuesday

On Monday, NQ opened with a large gap-up, forcing shorts to cover, triggering a brief small rally in the morning. Without any new fresh buyers NQ spent most of the day trading sideways in a very narrow range.

On the daily chart, Monday was the 7th up-day in a row for NQ from its August 8th low, so it may be ready for a 1 to 2 days pullback. With most shorts out of the market, without a pullback day it may just chop its way higher unless there are fresh buyers coming into the market.

On the 60-minute chart we have a 5-wave rally for NQ from its Augusr 8th low, so an ABC-wave pattern pulback is overdue and could come at anytime. As long as there is no severe pullback, NQ should continue to rally, next big target for NQ on the daily chart is 4050

Key support for NQ on Tuesday is 3990-3995.

Guideline For Monday

On Friday, NQ opened with a big gap-up and then after a brief rally above breakout level (3990), was agressively sold, tanking NQ down to support. 

Agressive buying by the Fed managed to push NQ back up to the opening price level by the close, setting up either a short-covering rally to above Friday's high or pulling back down to Friday's low..

Key price level for NQ on Monday will be 3990, prior swing high on the daily chart.

-- If NQ can stay above 3990 it could trigger another round of short-covering rally.

-- Failure to break-back and staying above 3990 could trigger another round of selling, with first support at 3970, then 3945. Strong support is at 3918 area.

Guideline For Friday

After a brief mini pullback soon after the open on Thursday morning NQ chopped its way higher, fueled by short-covering, and closed at the day high.

NQ is now in overbought territory on the 60-min chart, but not on the daily, so on Friday NQ is either going into a consolidation mode or continued to chop higher.

Key price level for NQ on Friday is 3970 resistance.

-- Trading above 3970 is an indication the shorts may continue to cover, next upside target is 4000.

-- Staying below 3970 implies NQ is going into a consolidation mode, likely to attract some profit-taking selling ahead of the long weekend, first downside target is 3945, now support.

Guideline For Thursday

As expected NQ opened with a gap-up above 3915 resistance. After a brief arbitrage sell mpact has subsided traders caught on the wrong side slowly covered their positions pushing NQ up to 3950 resistance level, and closing at the high of the day.

On Tuesday key price level for NQ is 3950 resistance.
-- Staying below 3950 resistance could trigger some profit-taking selling that can take NQ down to support zone between 3915 - 3920 area. As long as support hold NQ should resume its uptrend.
-- More short-covering above 3950 with the next resistance at 3970. then 3980 and 3990 (prior swing high).

Both the Dow and the S&P 500 futures contracts are still trading below major overhead resistance on the daily chart. Unless they break above their respective resistance zones NQ is going to be dragged down, and may resume its downtrend

Guideline For Wednesday

On Tuesday NQ opened and then promptly rallied up to resistance. When it failed to break above resistance sellers rushed in to sell, quickly tanking NQ down to support.

 After the lunch pullback NQ broke to lower low but was agressively bought, triggering a rally back up to FT pivot. 

As can be seen very clearly on the 60-minute chart, the pattern is set for a fast trending move to the upside capable of breaking through 3915 resistance level, targeting 3930-3950 resistance zone.

However, failure to breakout above 3915 should trigger another rounds of selling, this time it may be able to break below 3985 support, down to 3960 or 3940.

Key inflection price level for Wednesday is 3895.

-- Bullish above

-- Bearish below.

Guideline For Tuesday

On Monday, NQ opened with a big gap-up and then ran up to 3915 resistance before pulling back down in the afternoon. Although NQ was much more bullish than the S&P and the Dow, all the three indices were not able to breakout above their respective resistance level.

Key price level for NQ on Tuesday is 3915.

-- Failure to clearly break above 3915 is an indication that it should be sold, with first support at 3890. Breaking below 3890 is likely to trigger momentum algo sell programs, target down is 3840 support. Other possible supports are 3880 and 3870.

-- On the other hand, a clear break above 3915 resistance could trigger more short-covering that could propel NQ up to resistance levels at 3930, 3940 or 3950.

Guideline For Monday

After dropping down to support in the morning on Friday NQ rallied all day, with the usual profit-taking decline near the close.

Inflection price level for NQ on Monday will be 3865.

-- As long as NQ can stay above 3865 we should see a rally with first resistance at 3890, then 3915. Strong resistance is at 3930, it would take an extreme bullish internals to break above 3930.

-- Bearish below 3865 with first support at 3840. Lower supports are 3830 and 3800 which is a strong support.

Guideline For Friday

NQ opened with a gap-up but failed to break above resistance, then trend down all day, down to support before rally back up for the end of day profit-taking rally. 

Strong supports at 3830 - 3840 area.

-- Staying above 3830-3840 area implies sideways consolidation or rally day with first resistance at 3870 then 3890.

-- A clear break below 3830 could trigger strong algo selling, next support is 3800.

Guideline For Thursday

on Wednesday, NQ opened with a large gap-down and then immediately rallied all morning back up to resistance before pulling back down to the inflection price level.

For Tursday NQ either rally up on its next upleg to resistance or drop back down to re-test Wednesday's low, and it will depend on where it trades in relation to key inflection price level, for Thursday it will again be 3870.

-- Above 3870 NQ is bullish, resistance are 3895 and 3915

-- Bearish below 3870, with first support at 3855 and 3845, 3830, 3800

Guideline For Wednesday

NQ traded sideways in the morning on Tuesday before dropping down to near Friday's swing low before rallying into the close. 

NQ is currently inside a large trading range between 3850 support and 3920 resistance. A clear break out of the 3850 - 3920 range could trigger a strong trending move in the direction of the break.

Price inflection level for Wednesday is 3870

- - Bullish above 3870 with first resistance at 3895 and strong resistance at 3920.

-- Bearish below 3870, with first support at 3850. A clear break below 3850 could trigger momentum algo sell programs than can tank NQ quickly down to 3800. 

Guideline For Tuesday

After a quick decline in the morning on Monday NQ rallied most of the day, but profit-taking and heavy selling by traders anticipating a strong selloff on Tuesday tanked NQ about 20 points at the close.

Looking at the 60-minute chart, it is clear that Monday's high is wave abc 1:1 up as measured from Friday's low to Monday's morning high and Monday's low to Monday's high.

Trailing stoploss for the buyers are now just below Monday's swing low, so a clear break below Monday's low is likely to trigger momentum algo selling that could quickly tank NQ down to 3800.

Staying above Monday's low implies a sideways consolidation or another rally day.

Price inflection level on Tuesday is 3895 for NQ

-- Bullish above

-- Bearish below

Guideline For Monday

Looking at the NQ 60-minute chart, it is now crystal clear that Thursday and Friday action was either wave 3 or wave C down. The strength of the current decline leg makes Thursday and Friday sell-off more likely wave 3 down, and less likely wave C down, but anythign is possible.

If it was wave 3 down, when it ends, we should see wave 4 up, then followed by wave 5 down to lower low.

Wave 1 or A started at the July 24 high, ended at July 28 low.

Wave 2 or B started at July 28 low, ended July 30 high.

Wave 3 or C started at July 39 high. It looks like it may have ended at Friday low, but we shall see where it trades on Monday. 

If it was wave 3 down, the maximum upside target for wave 4 up is 3898. A clear break above 3898 is an indication that last week sell-off was just an ABC pulback down. 

As long as 3898 is not clearly violated, look for another lower low. Wave 4 retracement may take 1 to 2 days, and it is likely a flat abc wave or a triangle abcde wave, key level is 3898. 

Price inflection level for NQ on Monday morning is 3680.

-- Bulish above, with resistance at 3900

-- Bearish below, support at Friday's swing low.