NQ Guideline for Thuirsday

With Thursday as the last trading day of the year, there will be the last minute squaring of the books by traders and investors so anything is possible.

 

Support for NQ on Thursday will be 4630 then 4600.

Resistance is 4680 then 4700.

NQ Guideline For Wednesday

The usual overnight buy programs designed to cause a gap-up open in order to trigger short-covering rally did just that on Tuesday. NQ opened with a gap-up above key resistance that ignited short-covering rally that lasted all day long.

 

Unless some unexpected negative market moving news hit the market on Wednesday the uptrend should continue, with a morning pullback or without a morning pullback.

 

With most traders out of the office until the beginning of the new year market manipulators should not have much problem pushing the market higher.

NQ Guideline For Tuesday

With the end of the year and into January seasonal bias to the bullish side, Monday morning selloff in the market was reversed, NQ rallied the rest of the day and then close at the day high which was above the early morning high and right at FT Pivot resistance, and above key inflection price level of 4600 for Tuesday.

 

As long as NQ can stay above 4600 it should remain bullish but it has to clearly break above 4630 to ignite another round of short-covering, failure to break clearly above 4630 could attract short sellers that could send NQ back down to 4575 support. However, NQ needs to break below 4575 to trigger another round of selling.

 

Key resistance for NQ on Tuesday is 4630.

-- Failure to break clearly above 4630 could send NQ back down to 4575 support.

-- Breaking above and staying above 4630 is an indication the current upswing on the daily chart is still in progress. If so, short-covering can easily push NQ back up towards resistances 4680 and then 4700.

NQ Guideline for Thursday

With most traders already out of the office for the Christmas and New year holidays the market traded sideways on Monday in a narrow trading range.

Unless some unexpected market-moving events or news hit the market on Thursday look for the narrow range sideways trading action to continue until the new year.

Key price level for NQ on Thursday will be 4600 - now acting as support.

-- Tradign above 4600 on Thursday implies neutral to bullish market bias.

-- Trading below 4600 could trigger some sell programs that can push price down to the next support at 4575.

NQ Guideline for Wednesday

Another up day for NQ on Tuesday, the second up day in a row. If the downtrend is still in progress NQ should trend down on Wednesday, with or without first going up.

Key price level to watch for will be Tuesday swing low.

-- Staying above Tuesday swing low would be bullish but key resistance remains at 4590-4600. 

-- A clear break below Tuesday low is likely to trigger renew selling and resumption of a downtrend.

The price of crude oil should remain key to trend direction.

NQ Guideline For Tuesday

On Monday the market consolidated its two large down-days, traded sideways all day with a close near at the day high.

If the market is not in free-fall we should get another up-day on Tuesday before resuming its downtrend on Wednesday. Failure to get a rally day on Tuesday is an indication the market is going to tank hard.

Key price level for NQ on Tuesday will be 4550.

-- Trading above 4550 is bullish for Tuesday. If so, the next upside target is the resistance zone around 4590-4600.

-- Trading below 4550 is bearish, but NQ would need to clearly break below 4400 to trigger another round of liquidation decline.

TED Spread (bank counter-party risk) surges to 4-year high

NQ Guideline For Monday

For NQ, Friday was the second large down-days, with the low of the day not too far above its crucial 200 day moving average, a critical price zone for many funds and algos. A clear and sustained break is likely to trigger longer-term algo sell programs that based their trigger level on the daily chart.

A break is likely to cause a large trending down day for NQ. With both the S&P 500 and the Dow broken below their respective 200-dma, the chances NQ should break its 200-dma is very high. If so, supports  are 4300 then 4200.  

On the smaller time-frame, key price level for NQ on Monday will be 4500 support and 4550 resistance. A clear and sustained break above resistance or below support could trigger a fast move.

-- Trading above 4550 could trigger fast short-covering rally to the next resistance zone 4590-4600

-- trading below 4500 could trigger more also sell programs, likely downside target is below December 14 swing low.

NQ Guideline For Friday

Massive buy programs going into the FOMC decision and after the FOMC decision was announced failed to trigger multi-days rally as the market was sold off on Thursday.Unless massive buy programs hit the market on Friday the sell-off should continue on Friday.

For NQ key price level to watch for will be 4570 and the price of crude oil.
-- A clear break below 4570, along with a selloff in crude oil, is likely to trigger massive sell programs that should tank NQ down to 4500.
-- Staying above 4570 should keep sellers in check, if crude oil rally look for NQ to rally as well.

NQ Guideline For Thursday

To be expected on Wednesday, a rate increase by the Fed that was followed by massive buy programs by the fed to make sure that their decision seems bullish for the market. 

The Fed buy programs should continue for a while longer to ensure that majority is convinced the raising interest rate is a good thing. Whether or not their trick will succeed only time will tell, but credit contraction is intensifying and should continue to intensify going forward and may overwhelm the Fed.

With that in mind key price level for NQ on Thursday will be 4630.

-- If the uptrend is still alive then any pullback should not clearly below 4630. If so, the uptrend should continue.

-- A break below 4630 is bearish and implies Wednesday rally is short-lived. First support is 4600, then 4580.

NQ Guideline For Wednesday

NQ opened with a gap-up on Tuesday and then traded sideways all day. With a very manipulated market, anything is possible, looks for the Fed to continue to buy the market going into and after the release of the FOMC policy decision on Wednesday.

Key price level for NQ on Wednesday will be 4580.

-- NQ should remain bullish above 4580.

-- Trading below 4580 is bearish.

NQ Guideline For Tuesday

NQ traded down very hard in the morning on Monday, and every attempt to push the market up failed until after the European market has close. 

Then, non-stop buy programs managed to push the market all the way up to 4580 resistance near the close. With the Fed 2-days meeting scheduled to start on Tuesday look for the buy programs to continue going forward. Whether or not it would be sufficent to hold the market up would depends very much on the price of the Crude oil.

A rally in crude oil should help push the market up while a continual selloff in the crude oil could easily overrun the buy programs.

Key inflection price level for NQ on Tuesday will be 4550, bullish above, bearish below.

 

NQ Guideline For Monday

A large opening gap-down and trend down day for NQ on Friday. With the market now in oversold conditions on the daily chart, the market may consolidate and trade sideways or rally on Monday. However, failure to consolidate is an indication the market is in extreme selling momentum mode.

Key inflection price level for NQ on Monday will be 4550.

-- Trading above 4550 is bullish, first resistance is 4580 then 4600.

-- Trading below 4550 is bearish but it needs to trade below 4530 to trigger another rounds of intense algo selling, with next support at 4500.

Price of crude oil will remains key to market direction.

NQ Guideline For Friday

NQ consolidated sideways on Thursday remaining inside prior day trading range. With the the daily chart in a bearish mode NQ would need to clearly break and stay above 4670 to change the bias to from bearish to bullish.

Key price level for NQ on Friday will again be 4630.

-- Bearish below but it needs to break below 4600 to trigger selling algos and tank the market down. Staying above 4600 implies another sideways consolidation type of day

-- NQ will be in a  neutral mode above 4630, but a break above 4670 is likely to trigger short-covering rally.

The price of crude oil price remains a major influence on the equity market.

NQ Guideline For Thursday

NQ traded in tandem with the crude oil market on Wednesday, sold-off hard in the morning and then traded sideways in the afternoon. The correlation between the crude oil market and the stock market should continue. 

Key inflection price level for NQ on Thursday will be 4630.

-- If NQ can stay above 4630, short-covering rally could push price back up to the next resistance level 4670 provided the crude oil market is not in a sell-off mode.

-- Trading below 4630 is bearish, however, it would need to break below 4600 to trigger another rounds of selling, with the next potential support at 4550.

NQ Guideline For Wednesday

With the crude oil price set to tank hard on Tuesday which would have taken the equity market down with it, panic Fed may have gone crazy with buy programs, buying the crude oil market and the equity market in its attempt to prevent a total market crash ahead of next week FOMC meeting.

 

Their efforts might have temporarily stopped the crash in its track, but longer-term, unless the crude oil market can stabilize and rally back up into the $40 - $50 range, the wall street banks are going to collapse, taking the economy and the stock market with it.

For Wednesday, unless NQ can break back below 4670 along with crashing crude oil price, look for NQ to trade sideways or rally if NQ can break and stay above 4700.

Key support remains at 4670, and key resistance remains at 4700.

NQ Guidelien For Tuesday

NQ sold off hard in the morning but stayed above key support level 4670, then traded sideways the rest of the day, setting up a rally day for Tuesday. To do so, NQ has to stay above 4670 and break above 4700.

Falling crude oil price is negative for the stock market. With the price of crude oil breaking below key support of $40 per barrel on Monday, on its way down to $30, the stage is set for the stock market to collapse, but the timing of the collapse is more difficult to predict simply because the market is heavily manipulated by the central banks.

Again key price level for NQ on Tuesday is 4670. Remaining above 4670 implies either a sideways to bullish market.

NQ Guideline For Monday

With most traders and investors betting against the Euro, short-euro and Euro denominated assets and long-US$ and dollar denominated assets going into the ECB policy decision announcement last Thursday, betting that the ECB will increase their QE monthly amount because the ECB Draghi has been saying so, were disappointed and crushed when Draghi failed to live up to his promise.

Euro rallied and dollar tank crushing a lot of people's bank account, triggering global market selloff. The Fed and the ECB partially rescued them on Friday with their massive and relentless buy programs that lasted the whole Friday. Whether or not that was enough to get the bull market going again we just have to wait and see going forward. But unless they can stop the trend reversal in the US$ and Euro, the stage is set for a major unwinding of the Euro/Dollar carry trade that will crush the markets.

Key price level for NQ on Monday will be 4660.

-- Bullish above

-- Bearish below

Very important market to watch will be the crude oil market with $40 price level as key price level to watch for. Trading below $40 per barrel will be bearish for the stock market

NQ Guideline For Friday

A massive selloff day in the equity market on Thursday following a disappointing decision by the ECB. The market participants has factored in a massive increase in the QE amount but the ECB did not deliver.

 

Unless the ECB would change soon, the selloff should continue, and can get out of hand very quickly as most traders and investors are long and highly leveraged.

Key inflection price level for Friday will be 4630.

-- Trading above 4630 could trigger short-covering, with resistances coming in at 4660 then 4680

-- Trading below 4630 is bearish, but only a clear and sustained break below 4580 could trigger another round of liquidation decline. Staying above 4580 implies a sideways choppy trading session.

NQ Guideline For Thursday

The equity market sold off hard in the afternoon on Wednesday after the Fed Janet Yellin spoke to the media and also ahead of the ECB policy decision announcement on Thursday.

NQ rallied a bit into the close on profit-taking. If it is just profit-taking the decline should resumes on Thursday and break key support price level of 4680, lwer supports are 4655 then 4600.

Should NQ be able to rally and stay above 4700 look for NQ to rally back up to retest the recent high, but first resistance above 4700 is 4725.

NQ Guideline for Wednesday

After a choppy morning session NQ rallied in the afternoon and closed at the high of the day. With the European Central Bank expected to announce more QE on Thursday, the market should continue to rally as central banks continue to buy equities.

Key inflection price level for NQ on Wednesday will be 4700.

-- NQ uptrend continues as long as it stays above 4700.

-- Trading below 4700 implies NQ is going into a pullback down mode with key support at 4685, and as long as 4685 is not clearly violated on any decline look for NQ to rally back up after pullback ends.

NQ Guideline For Tuesday

There was not so much happening in the market on Monday with NQ continuing to gravitate towards the balance price zone around 4675 area. After trending down in the morning to first support zone NQ rallied back up to the balance price zone, closing just below it.

The pattern may get repeated on Tuesday with attempted trending move that could get reversed and pushed back toward the balance price zone. 

Key inflection price zone for NQ on Tuesday will again be 4675 area.

-- Bullish above 4675, first resistance is 4700.

-- Bearish below 4675, first support is again 4655

NQ Guideline For Monday

With most traders out of the office for the long weekend to celebrate the Thanksgiving holiday the market did not move very much in either direction, NQ stayed close to its key inflection price level of 4675 area. 

With most traders now back from the holidays we should see the market moving away from the 4675 balance area, the direction will be based on where it trades in relation to 4675. But with the Fed December policy meeting coming up soon any trending move may be muted.

-- Bullish above 4675, with the next resistance at 4700.

-- Bearish below 4675, with the next support at 4655.

NQ Guideline For Wednesday

With global stock markets selling off after the downing of the Russian Jet fighter the Fed went nuts with buy programs, pushing the market back up, NQ closed just below key price inflection level, 4675.

4675 will become key inflection price level for Wednesday's trading session.

-- Breaking back above 4675 is likely to trigger short-covering rally targeting a break above the recent swing high 4707.

-- Failure to break back above 4675 is likely to attract selling, but as long as it can stay above Tuesday's swing low, NQ is likely to remain choppy.

NQ Guideline For Tuesday

After making a higher high early in the trading session NQ pullback down breaking below key support but managed to close just right at key inflection price level 4675.

On Tuesday a sustained re-break back above 4675 is an indication NQ pullback has ended and that the next rally day is in progress, targeting a higher-high.

Trading below 4675 implies pullback down move is still in progress, next lower support is 4630.

NQ Guideline for Monday

A sideways consolidation day for NQ on Friday, a setup for a rally day on Monday or a pullback-down day. But with NQ bumping against resistance on Friday it would take a lot of buy programs for the Fed to push the market higher.

Key support for Monday is 4675 for NQ. If NQ can stay above 4675 look for another rally day on Monday.

NQ Guideline For Friday

NQ morning rally bumped into 4675 resistance on Thursday, then decline all afternoon which continued into the close, making Thursday a sideways narrow range consolidation day.

Once consolidation has ended, and as long as consolidation does not clearly break key support zone 4630 in NQ for Friday, rally should resume, next resistance is 4700.

Key inflection price level for NQ on Friday will be 4665, bullish above, bearish below.

NQ Guideline for Thursday

Another all day buying binge by the Fed designed to create a bullish day to spur market confidence on the day the FOMC releases its minutes from its last meeting.

With still more room for the market to rally before bumping up against strong resistance, as logn as any pullback down move does not get out of control look for the rally to continue.

For NQ, with the next resistance zone not until around 4680 - 4700 NQ can follow one of two path.

1. For NQ to rally up to resistance in the morning then sell-off during lunch and in the afternoon, or

2. Pullback down in the morning then rally during lunch and afternoon

NQ Guideline For Wednesday

A sideways consolidation day for NQ on Tuesday following a massive rally day on Monday traded between 4600 resistance and 4550 support.

Withe the 60-minute chart pattern showing a 50/50 chance of going up or down on Wednesday the key for trend direction would be where it trades in relation to its key support and resistance 4550 - 4600.

-- Bullish above 4600

-- bearish below 4550

NQ Guideline For Tuesday

A coordinated buying binge by major central backs to push the equity market up eventually succeed after the European stock market has closed. Buy programs is likely yo continue on Tuesday with the next resistance for NQ at around 4600. 

For the rally to continue NQ has to stay above 4550. Failure to stay above 4550 implies either sideways consolidation or a resumption of the recent sell-off, with key support at Monday's swing low.

VIX must be crushed to levitate stocks because the terrorists can’t be allowed to win.

NQ Guideline For Monday

A down-day for NQ on Friday, the selloff started right from the opening bell and continued all day into the close.

With such a negative momentum going into the close, unless NQ can stay above 4500 support I am looking for another sell-off day.with the downside target on the daily chart at 4400.

However, with the 60-minute timeframe currently in deep oversold  territory there is a possibility NQ could have a large bounce with key resistance at 4550 area.

If NQ can break and then stay above 4550, a rally to next resistance 4610-4615 is very likely. Failure to do so should lead to another strong selling.

NQ Guideline For Friday

A sharp sell-off in the various markets on Thursday, including the equities, Crude Oil and metals. 

With NQ still in a pullback-down mode, after opening with a large gap-down, an attempted rally in NQ failed as short-sellers again sold rallies. NQ selloff continued all afternoon and into the close, setting up either a gap-down open on Friday or another sharp sell-off on Friday, down to key support 4540 to 4560.

Unless crude oil price can stabilize, and unless NQ can rally and stay above 4610 on Friday, another down day for NQ is likely, next lower support is 4540 - 4560.

The stock of auction house Sotheby’s  tends to peak ahead of the art market (which seems to have happened again), and when it declines as much as it has in recent months, it has been a minor warning sign for the broader stock market (see chart below).

NQ Guideline For Thursday

On Wednesday, buy programs pushed NQ up to 4670 key resistance but was not able to break out above it, a failure attracted short-seller pushing NQ back down to the low of the day.

With NQ currently in a pullback down mode on the daily chart, a break below its recent low 4615  is likely to trigger numerous strong selling algorithms.

Key resistance for Thursday will be 4670 and key support is 4615.

-- A break our of 4615 - 4670 price zone is likely to trigger a strong breakout in the direction of the break.

-- NQ would stay in a choppy mode inside the 4615 -  4670 trading range.

NQ Guideline For Wednesday

NQ remained in a down-mode on Tuesday. After making a lower low soon after the open NQ traded in a sideways consolidation pattern for the rest of the day setting up another strong selloff. To do so NQ should stay below 4645 swing high and then trend down below Tuesday low.

Breaking above 4645 swing high could trigger short-covering rally.

NQ Guideline For Tuesday

NQ was clearly in a pullback-down mode on Monday, a strong selloff in the morning followed by a choppy rally for the rest of the day, clearly still a counter-trend up-move that should be followed by another sell-off, that is, as long as NQ rally remains below Monday's high and remains choppy.

Key inflection price level for NQ on Tuesday will be 4675.

-- As long as NQ remains below 4675 there is a high possibility another sharp selloff down moev is coming.

-- Breaking back above 4675 would relieve some selling pressure, and has the potential to trigger a short-covering rally.

NQ Guideline For Monday

Another sideways choppy day for NQ on Friday, the third pullback day in a row. 

If the current NQ uptrend on the daily chart is still in progress we should see a rally day for NQ on Monday. To do so NQ should stay above 4700 key inflection price level for Monday and push higher to above 4730 swing high.

However, staying below 4700 is an indication NQ daily uptrend may have ended. If so, look for NQ to trend down on Monday, and break below Friday low. Key support is 4670 and a clear break below 4670 could trigger strong selling algos. 

Against the backdrop of strong October employment reports and the Fed being forced to raise interest rates in their December meeting or lose all credibility, and when the ECB and the BOJ are going into money-printing binge, look for the USD to rally and gold to decline going forward, at least until December FOMC meeting.

Gold Price chart

NQ Guideline For Friday

Another narrow-range down day for NQ on Thursday. With NQ in deep overbought territory it would requires a massive Fed buy programs to push the market higher without first a larger pullback.

The employment reports to be released before the market open on Friday could provide an excuse to move the market higher or lower.

Key inflection price level for NQ on Friday will be 4700.

-- Bullish above 4700, with the next upside target will a break above 4730 swing high.

-- Bearish below 4700, with the next support coming in around 4670.

NQ Guideline For Thursday

NQ traded sideways all day on Wednesday but with a slight bearish bias. NQ closed in the middle of the trading range, but above key support price level at 4700, setting up for a rally day on Thursday as long as NQ can stay above 4700.

However, if NQ is not able to stay above 4700, a break below 4700 is bearish and setting up another down-leg. If so the next support is 4680.

NQ Guideline For Wednesday

Another up day for NQ on Tuesday with short-sellers being forced to cover. Although the market is in extreme overbought territory on all time frames, and is vulnerable to a large and quick down-move, with uptrend in extremely strong momentum, as long as pullback down does not get out of control NQ should continue to melt upward.

Key support for NQ on Wednesday will be 4700.

NQ Guideline For Tuesday

On Monday, NQ rallied to a new high above prior swing high (July high), the high before the massive August plunge, and closed above July high, setting up a massive short-covering rally, which is exactly what the Fed buyers are hoping for, or a sharp reversal back down if the Fed is unable to hold NQ above July high and trigger a short-covering rally..

Key price level for Tuesday will be around 4675.

-- Bullish above, target is another higher-high above Monday's swing high.

-- A break-back below 4675 is bearish but NQ would need to break below 4645 to gain downside momentum.

NQ Guideline For Thursday

Massive sell programs right after the released of the FOMC policy announcement very likely engineered by the Fed designed to lure short-sellers in order to trapped then to help propel the market higher with the sell program that was quickly reversed. 

With the Fed now trapped in their failed policy, QE and ZIRP, it is only natural for them to continually push the market higher in order to paint a rosy picture of the economy when in fact the economy is going into severe recession which has likely started and should eventually go into severe contraction. 

Once recession has started in earnest a sustained and severe stock market decline should follow suit in a very near future. But with the Fed continuing to pump liquidity via QE through the ECB, PBOC, BOE and BOJ the stock market may continue to rally into the end of the year if central banks have their wish.

Key support for Thursday is 4635. As long as NQ pullback can stay above 4635 look for NQ uptrend to continue to higher-high.

Here is a picture of a short-squeeze

NQ Guideline For Wednesday

Tuesday was the third narrow-range consolidation day for NQ. Ahead of the FOMC policy announcement on Wednesday afternoon look for the market to continue to trade sideways in a narrow-range, unless some unexpected market-moving news hit the market.

Although most traders and investors don't expect any policy change by the Fed many would still prefer to wait to see what the Fed is going to do going forward.

A hint of QE4 announcement could send the market upward, and without which, and without any new buyers to help push the market higher, look for selling to begin.

Key price levels for NQ on Wednesday will be 4615 support and 4635 resistance. A sustained breakout or breakdown, particularly after the FOMC decision announcement could starts a trending move in the direction of the break.

NQ Guideline for Tuesday

With the FOMC meeting scheduled for Tuesday and Wednesday, unless some unexpected market-moving news hit the market, NQ should stay inside a trading range ahead of the FOMC policy decision announcement on Wednesday afternoon.

Although the Fed is not expected to make any change in their policy, many traders would rather wait for the Fed announcement before making a longer-term decision, so with that as a guide, look for NQ to stay inside a trading range.

-- Supports are 4600 then 4590 and 4570.

-- Resistance is 4640.

The recent rally has been no more that just short-squeeze

NQ Guideline For Monday

With major global central banks, the ECB, PBOC, BOJ and the Fed embarking on fresh money-printing binge, and with most of the newly minted money going into the purchase of stocks because there is no more bonds to buy, the markets are all exploding to the upside.

How far will the central banks be able to push the market up without causing a loss in confidence in central banking, there is no way to know, only time will tell, but for now, all markets are in an uptrend blow-off mode. When it ends, the snap-back reversal could be really fast.

For now, key support for NQ on Monday will be 4590.

-- As long as NQ does not clearl;y violate 4590 support, look for fast move rally to continue. Next target is above July swing high.

-- Breaking below 4590 could trigger stop-loss sell programs, if so next support is 4550. 

NQ Guideline For Friday

A very timely placed monster buy programs, the size of the buy program can only be done by the Fed, hit the market at the very end of Thursday's trading session when most traders were already out of their office, and arbitrage trading computers have already been turned off, rocketed the market up, with NQ up over 65 points in just the last 15 minutes of trading.

Because of the artificial of the end of the day ramp up activities, how the market trades on Friday is anyone's guess and it would depends on where it trades in relation to key price level, and for NQ the key price level will be 4550 resistance.

-- As long as NQ stays below 4550, NQ is either tradign sideways or selloff, with first support at 4500.

-- A sustained break above 4550 is likely to forced the shorts to cover with a big loss, that could lead to another up-day.

S&P 500 closed just below key resistance/inflection price zone 2055 - 2060. 

NQ Guideline For Thursday

As usual, the manipulated market opened with a gap-up on Wednesday, intended to trigger a short-covering rally, but it failed. 

After making a higher high above prior day high soon after the open, NQ sold off all day with the close below prior day low and at the low of the day, a bearish reversal day, setting a multi days pullback down with a downside target at 4300 for NQ. 

Key resistance price level for NQ on Thursday will be 4435.

-- As long as any rally does not clearly violate 4435 resistance area NQ should continue to go lower to below Wednesday swing low, next support is at 4390 then 4360, target down is 4300.

-- Clearly breaking above 4435 is an indication NQ is likely to go back up to above Wednesday swing high.

NQ Guideline For Wednesday

A narrow-range down day for NQ on Tuesday. Normally, it should be followed by another down day on Wednesday, but today's market is anything but normal as the Fed buyers are very active with their buy programs in order to keep the uptrend going.

Key inflection price level for NQ on Wednesday will be 4425.

-- Bullish above 4425, with first resistance at 4455.

-- Bearish below 4425, with first support is at 4390-4400.

NQ Guideline for Tuesday

With the Fed and the shorts that were forced to cover their position as the only buyer in town the market rallied on Monday but in a very choppy fashion to a higher high.

The pattern should continue as long as any pullback decline does not breach certain key support level, which is 4425 for NQ on Tuesday.

-- As long as pullback decline does not clearly breach 4425, look for another higher high in NQ with the next resistance at 4500.

-- A clear break below 4425 could be the beginning of a 1 to 3 days decline.

NQ Guideline For Monday

A short-covering rally day for NQ on Friday, with the close right at the day high and just below important resistance price level which is a spike high following the FOMC policy decision in Septermber.

With a very manipulated market, and the Fed buyers fully aware of the fact that so many stop-losses will be residing just above that high 4440 area, they will surely try to push the market higher in order to trigger short-covering rally. 

So a key price level for Monday will be 4440.

-- NQ trading above 4440 has the potential to trigger a short-covering trending-up day on Monday.

-- But a failure to break above 4440, or a failure to stay above 4440 after the break, could trigger a large down-day with support at 4390-4400, then 4320-4330 

With global central banks rushing to get out of the US treasury bonds, combined with Fed's inability or unwillingness to raise interest rates, look for the US dollar to continue to trend lower.

NQ Guideline For Friday

With the Fed finally admitting that they will not be able raise the Fed funds rate until at least March 2016 the short-sellers continues to continue to cover triggering another short-covering rally day in the equity market on Thursday. 

We should continue to see the same price action on Friday as the shorts covers ahead of the weekend. All major US equity indices are now in bullish mode. Unless unexpected major events hit the market and cause substantial decline, look for the rally to continue on Friday..

Key support price level for NQ going into Friday is 4380 - 4390 price zone.

-- As long as any pullback decline can stay above 4380-4390 price zone look for NQ to make another higher high on Friday.

NQ Guideline For Tuesday

NQ traded sideways in a choppy manner on Monday, unable to get much rally traction, likely setting up for a large pullback down move.

On the 60-minute chart, NQ rally is now in its fifth way up from September 29 low, and is now in overbought territory. And once wave 5 rally has ended, we can expect a larger NQ pullback down move.

Key price level for NQ on Tuesday will be 4360 support.

-- Trading below 4360 support is an indication that wave 5 rally has ended and the start of a larger decline is in progress. If so the first downside target for NQ is 4250 area. First NQ support is 4320, and has the potential to cause a temporary bounce.

-- Any decline that cannot clearly break below 4360 implies wave 5 rally is still alive and still in progress, next resistance is at 4400 then 4430.  

NQ Guideline For Monday

A small rally day for NQ on Friday as the short-sellers covered heir position for the weekend. With all the major stock indices currently in bullish mode, and not yet in overbought territory, look for the market to continue to rally on Monday as long as any pullback does not violated key support zone on Monday.

For NQ key support zones will be between 4320 - 4330.

-- As long as NQ stays above 4320-4330 price zone, NQ should continue to rally to higher high above Fridays swing high of 4370 area, and the next resistance is 4400.

-- As long as China stock market does not sell off in a big way look for NQ 4320-4330 support zone to hold on any decline.

NQ Guideline For Friday

The market traded down in the morning until the Fed triggered massive buying binge designed to paint the market in a positive outlook after the released of the FOMC minutes.

With the Fed desperate to prevent deflationary collapse look for the Fed liquidity injection to continue, then if that does not help catapult the market higher in a big way, look for the Fed to announce QE4.

More easing is positive for the precious metals, crude oil and stocks and negative for the USD and US Treasury bond. Over-easing by the Fed however, could precipitate uncontrollable USD and US treasury bond collapse.

NQ Guideline For Thursday

NQ traded sideways again on Wednesday, either a setup for the next leg up or a sideways consolidation for a pullback down day on Thursday.

Key price level for NQ on Thursday will be 4300 support and 4330 resistance.

-- Above 4330 resistance implies NQ is going to trend up on Thursday.

-- Trading below 4300 is likely to trigger some sell programs that can push price down to the next support at 4260.

Tension in the middle east continues to heat up by the day as Russian jets continues to bomb American-sponsored terror groups in Syria.

NQ Guideline For Wednesday

The market traded sideways in a consolidation pattern on Tuesday with NQ spotting a bear flag on the 60-minute chart.. 

Key price level for NQ on Wednesday is 4300.

-- Staying below 4300 is an indication the bear flag is still in play and should resolved itself to the downside. The next lower support is 4200

-- Breaking and staying above 4300 implies Tuesday consolidation is just a setup for the next leg up.

An imminent launching of QE4 by the Fed and the heightened tension in the middle east between the Russian and the American is contributing to the weakening of the USD and the US Treasury Bond and putting in solid bid under the Gold and the Crude Oil markets.

NQ Guideline For Tuesday

Another rally day for NQ on Monday as the Fed may be getting closer to launching QE4. Gold, Silver and Oil all rallied on Monday but treasury bond has another big decline. US dollar is also struggling, clearly a sign QE4 is getting closer.

The launch of QE4 is likely to trigger short-lived short-covering rally in the stock market but a collapsing bond market may kill the dollar instantaneously which may may also kill the stock market as well.

Key price level for NQ on Tuesday will be 4330.

-- A pullback-down day for NQ below 4330, first support will be 4300 then 4275.

-- More short-covering above 4330  

NQ Guideline for Monday

A short-covering day for NQ on Friday. With the Fed buy programs in full force again on Monday, look for short-covering to continue as long as NQ does not dropped below 4175 key support price level for Monday. The next resistance is 4300.

First support for Monday will be 4200.

NQ Guideline For Friday

Another up day for NQ on Thursday. With traders balancing their trading book for the weekend look for the shorts to cover on Friday that can result in another up day for NQ. If so, the next resistance is 4200 then 4220.

NQ would need to clearly break below 4100 to trigger potential sell-off.

 

NQ Guideline For Thursday

The usual overnight ramp up by the Fed gap the market up at the open on Wednesday. Buy programs continued all day with the closing price near the day high. 

With the Fed getting more worried of deflationary collapse, the ramp up should continue on Wednesday night and into Thursday for the end of quarter window dressing.

Resistance for NQ on Thursday will be 4200 then 4300. 

NQ Guideline For Wednesday

With all the major indices in a downtrend, sell the rally crowd has been winning the day since the FOMC decision over a week ago. 

On Tuesday NQ rallied sharply in the morning only to be sold off most of the day with the usual profit-taking rally into the close.

Tuesday swing low 4040 for NQ was at the lower end of a strong support zone. Failure to bounce from 4040 is bearish, and a clear and sustained break below 4040 is likely to attract major selling algorithm and a quick tank down to August low at 3900.

Current stock market decline seems to be following the pattern of the 1929 deflationary collapse. It should continue to follow the same path until the Fed announces some kind of a QE4

NQ Guideline For Tuesday

Heavy selling pressure hit the market right from the opening bell on Monday. The sell-off continued all day on Monday with NQ closing near the low of the day. Monday was the second large down day in a row. If the current decline pattern follows the prior decline leg in August, look for NQ to have a third large range down day on Tuesday.

With NQ low of the day at strong support zone between 4050 - 4100, a bounce is possible on Tuesday. If so look for a sideways consolidation day.

However, staying below 4100 price level has the potential to attract algo sell programs that can tank NQ down to re-test August low at 3900.

As we can see from the Brazilian ETF chart below, Brazil stock market has been selling-off since September 2014