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