NQ Guideline For Friday

On Thursday NQ opened with a gap-down, then immediately rally back up to key inflection price level 4475. It failure to break above 4475 attracted overwhelming number of short-sellers, tanking NQ down to key support, 4437. After a brief sharp counter-trend bounce NQ resumed it downtrend easily broke below key support 4437, down to lower support levels.

On Friday NQ either trades sideways consolidating the big Thursday sell-off, or resumes Thursday selling, as the longs, now caught in a recent false breakout of the high, panic and exit in mass, unless the Fed buyers would come into the market and buy aggressively.

NQ will remain under pressure as long as it trades below 4475.

NQ Guideline For Thursday

Another pullback-down day for NQ on Wednesday, downtrend int he morning and rally in the afternoon with a close right around key inflection price level for Thursday. NQ needs to rally very soon as failure to do so is is likely to attract short-sellers that can overwhelm the buyers and cause the market to tank hard.

Key inflection price level for NQ on Thursday will be 4475 area.

-- As long as NQ can stay above 4475 it is likely to rally with key resistance at 4510.

-- Selling pressure should continue with NQ below 4475 with critical support at 4437. A clear break below 4437 could trigger massive algo sell programs.

NQ Wednesday's Guideline

On Tuesday NQ opened just below key inflection price level, immediately triggered massive algo sell programs that tanked NQ down to re-test its daily breakout price level at 4473-4478 area.

Tuesday was also the second pullback-down day after breaking out above prior swing high made in March 02. For the current breakout to continue upward NQ should begin to rally again on Tuesday, because failure to rally after a 2-day pullback, is an indication the breakout is likely to fail.

Key inflection price level on Wednesday will be Tuesday's swing high 4532.

-- A clear break above 4532 could trigger another round of algo buy programs by the Fed, targeting a break above Friday's high.

-- Below 4532 NQ is likely to pullback down to re-test breakout price level 4473-4478 area. 

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NQ Guideline For Tuesday

On Monday NQ opened with a gap-up and after briefly running up, it quickly reversed back down, and then trend down all day into the close with the usual end of day profit-taking.

With the closing price at Monday and Tuesday's key inflection price level (4525), the direction of Tuesday's trend will depend on where it trades in relation to 4525.

-- Bullish above, targeting a test of Monday's morning high, potential a lower high re-test.

-- Bearish below 4525,with critical support at 4510. A break below is likely to trigger algo sell programs that can tank NQ quickly down to 4380 area. 

NQ Guideline For Monday

Massive buy programs triggered by the Fed algo buyers Thursday night designed to trigger short squeeze produced a very large opening gap-up for NQ on Friday morning but there did not seems to be much of a buying panic, NQ simply traded in a very choppy fashion upward, closing near the day high, and as long as Friday's low is not violated, NQ is either trading sideways to consolidated the huge gap-up, or trend up again.

Key inflection price level to watch for on Monday will be 4525

-- Trading above 4525 implies the uptrend should continue

-- Breaking below 4525 is an indication NQ is going to consolidate, key support is Friday's swing low.

-- Breaking below Friday's swing low could trigger sharp selling, next lower support is 4485.

NQ Guideline For Friday

On Thursday NQ traded sideways in the morning before the Fed buy programs were finally able to push the market up. 

Nasdaq finally made a new high above the high attained 15 years ago. With a sharp profit-taking decline at the end of the day starting to built momentum, a massive buy program by the Fed buyers pushed NQ back up to closed near the day high, they hope would help trigger massive short-covering rally that can last many days.

Key price level for NQ going forward will be 4470 support 

-- Ability to stay above 4470 could trigger a multi-days up-trending move.

-- Breaking back below 4470 could trigger a multi-days fast reversal back down

NQ Guideline For Thursday

On Wednesday NQ pulled back down in the morning before rallying back up to 4460 resistance. NQ is having some problem breaking above prior swing high that was set at the beginning of March. 

The current rally is the fourth attempt at breaking above the early March high (now key resistance) of about 4478. Failure to break above could again attract short-selling that can tank NQ back down to support.

Key price level for NQ on Thursday will be 4440.

-- Staying above 4440 is an indication NQ uptrend is still well intact, with resistances at 4460 then 4478.

-- Trading back below 4440 implies NQ is either in a pullback consolidation mode with lower support at 4425.

NQ Guideline For Wednesday

On Tuesday, NQ opened with a large gap-up to above key resistance 4425-4430 zone, then spent the rest of the day trading sideways in a narrow trading range just above broken resistance turned support (4425-4430), setting up a trending move up on its way to the next resistance zone 4460-4480, or dropping back down below support on its way down to 4370-4380 support zone.

Key price zone for NQ on Wednesday will be 4425-4430.

-- Bullish above

-- Bearish below

NQ Guideline For Tuesday

On Monday NQ opened with a gap-up just below key resistance price zone 4370-4380, continuing Friday's end of day rally. With huge buy programs triggered right at the open designed to break through resistance successfully broke above resistance, and then continue on its uptrend all day long, making Monday a trend-up day

For Tuesday NQ either rally up into the next resistance 4425-4430 in the morning then pulling back down to 4400, or first pulling back down to support in the morning then rally back up to 4425-4430 resistance.

A clear and sustained break above 4425-4430 resistance is likely to trigger another round of buy programs

S&P 500 chart for the week ending April 17, 2015

NQ Guideline For Monday

NQ opened with a huge gap down below support, then ran down then rallied up into key resistance 4350 in the afternoon, setting up more rally on Monday or a decline to retest Friday swing low.

Key price level to watch for on Monday will ve 4350.

-- Trading above 4350 is likely to trigger a short-covering rally up to re-test broken-support now resistance 4370-4380 area.

-- Trading below 4350 is likely to trigger sell programs. If so, NQ is likely to drop down to re-test or break Friday's low 4325.

NQ Guideline For Friday

A very narrow-range choppy sideways price action for NQ on Thursday, stuck between 4430 resistance and 4400 support, which will serve as key price levels for NQ on Friday.

A sustained break out of the 4400-4430 price range is likely to trigger a trending move out of the range in the direction of the break. However, because Friday tends to be a choppy non-trending type of day, be aware of a potential false breakout, where a breakout is sharply reversed.

S&P 500 Snapshot: A Two-Day Rally was snapped on Thursday

NQ Guideline For Thursday

On Wednesday with NQ trading above 4400 key price inflection level, indicating NQ was in a bullish mode, NQ spent the whole day rallying in a choppy fashion toward another resistance level, closing just below resistance 4425-4430 area, setting a stage for either a pullback-down to 4370-4380 support or, breaking above 4430 resistance, rallying up to 4460 or 4480 resistance level.

NQ Guideline For Wednesday

Sell programs triggered soon after the open tank NQ quickly down to strong support 4370 area before spending the rest of the day rallying back up, in a choppy fashion towards 4400 resistance which wil be key price level for Wednesday.

Failure to stay above 4400 on Wednesday is likely to trigger another round of sell programs, first target down is a re-test of 4370 support.

Trading above 4400 could trigger a move back up towards 4425-4430 resistance.

NQ Guideline For Tuesday

As usual, the Fed buy programs triggered right at the open designed to run-over stop-losses in order to cause the shorts to panic and cover, pushed NQ up through key resistance 4430, but it failed to trigger enough buying to keep NQ above broken resistance turned support.

Short-sellers overwhelmed the buyer and NQ began to sell-off starting about one hour after the open, after most the shorts had covered.

Unless NQ can break-back up above 4430, NQ is likely to continue down on Tuesday, next support is 4370-4380 area. 

If that support does not hold, we may likely see the sell-off to continue further down to the next support level of 4350

Here is global QE vs S&P 500

NQ Guideline For Monday

Last Friday was the third up-days in a row for NQ, heading towards a strong resistance zone at 4425-4430 area.Failure to clearly break above could trigger some short-selling and profit-taking that could push NQ back down towards 4380 key support area.

A clear break above 4425-4430 area is an indication NQ is heading towards prior swing high that was established at the beginning of March 2015

To keep the strong uptrend alive, any morning pullback on Monday should stay above 4390 area. Breaking below implies NQ is in a larger pullback mode down to 4480 key support or lower.
  
S&P 500 Snapshot: Up 1.70% last Week

NQ Guideline For Friday

The Fed buy programs soon after the open on Thursday, designed to break above 4380 resistance in order to trigger a short-covering rally was repelled, pushing NQ back down below 4380.Only a late day rally managed to clearly break above 4380 resistance, and closed near 4400 whole number resistance.

Key price levels for NQ on Friday will be 4370 support and 4400 resistance.

-- NQ would need to stay above 4370 support to remains on the bullish side. However, NQ would need to clearly break above 4400 to trigger another rounds of buy programs.

-- Below 4400 is an indication NQ is going to consolidate and trades sideways. Only a clear break below 4370 would turn NQ into a bearish mode.  Lower supports are 4350 then 4330.

10-Year Note Yield

A log-scale snapshot of the 10-year yield offers a more accurate view of the relative change over time. Here is a long look since 1965, starting well before the 1973 Oil Embargo that triggered the era of "stagflation" (economic stagnation with inflation). I've drawn a trendline (the red one) connecting the interim highs following those stagflationary years. The red line starts with the 1987 closing high on the Friday before the notorious Black Monday market crash. The S&P 500 fell 5.16% that Friday and 20.47% on Black Monday.

NQ Guideline For Thursday

NQ opened above 4330 key support on Wednesday which kept NQ on a bullish side. Buy programs likely triggered by the Fed algos pushed NQ towards resistance, but profit-taking and short-selling held NQ below key resistance of 4380.

NQ would need to break above 4380 resistance soon to keep NQ on the bullsh side, as failure to break above 4380 is likely to attract enough short-sellers to tank NQ back down.

NQ Guideline For Wednesday

On Tuesday NQ rallied towards 4380 resistance area but profit-takers and short-sellers sold aggressively just below resistance, tanking NQ back down to just above 4330 support. 

The trend direction for NQ on Wednesday will depends on where it trades in relation to key support, 4330.

-- As long as NQ can stay above 4330, it may have a chance to rally back up to 4380 resistance area.

-- Breaking below 4330 will turn NQ bearish, an indication NQ may want to go back down to test  4280 swing low. If so, any bounce is to be sold.

Crude Oil continued to rally

 

NQ Guideline For Tuesday

A negative reaction to horrible employment number last week Friday might have scared the Fed enough to compel the fed to intervene aggressively on Monday as they triggered one of the biggest and relentless buy programs designed to trigger panic buying by the short-sellers.

As a consequence the stock market opened with a gap-down but immediately rallied up all day and into the close with a small profit-taking decline near the close.

Whether or not the rally will get sold on Tuesday will depends on what the market thinks the next Fed action is going to be. Already Goldman Sach is calling for the Fed to delay raising their interest rates. If so, the market should continue to rally on Tuesday. If not, the market is likely to sell-off.

Key price level for NQ on Tuesday will be 4350 resistance.

-- If NQ can trade above 4350 on Tuesday short-covering should continue.

-- Failure to clearly break above 4350 could cause NQ to pullback down to key support  4320-4330 area. 

-- Clearly breaking below 4320 could attract major algo sell programs.

Gold is currently in a bullish Inverse Head & Shoulder pattern on the daily chart

NQ Guideline For Friday

NQ traded sideways in a very narrow range on Thursday, settign up for a trend move up or down depending on the direction of the break. because Friday is usually a sideways consolidation day, it is also possible for NQ to remail inside the 4300 - 4330 trading range.

Key price level for NQ on Friday will be 4300 support and 4330 resistance. Any break out of the range dan trigger a trending move out of the range. A false breakout however could trigger a fast reversal.

NQ Guideline For Thursday

On Wednesday NQ opened below 4330 support which triggered massive algo sell programs that tanked NQ down recent swing low before trading sideways the rest of the day. Late day profit-taking rally push NQ back up toward 4330 broken support-now resistance.

On Thursday 4330 will remains as key price level to watch.

-- Failure to break-back above 4330 could attract algo sell programs that can tank NQ back down to re-test 4270-4280 swing low.

-- Breaking above 4330 could trigger shot-covering that can send NQ back up to re-test recent high, 4380, but there are several resistance levels, 4340, and 4350 that can halt the rally.