NQ Guideline For Tuesday

A slightly bearish day for NQ on Monday with the close near the day low. With the Chinese market selling off on Tuesday, if the sell-off continues into the close, it has the potential to drag the US market down with it and likely to trigger another round of liquidation decline.

Key support for Tuesday will be 4200.

-- Below 4200 the algorithm selling programs could tank NQ down to 4000 very quickly.

-- Ability to stay above 4200 would keep NQ in a sideways to up-mode.

Guideline For Monday

NQ traded sideways between 4275 support and 4335 resistance on Friday setting up a big move on Monday, the direction of the move will depends on where it trades in relation to the 4275-4335 trading range after the open.

If the Chinese market sell-off in early Asian trading on Monday continue all day look for the US market to get dragged down.

Key price zone for NQ remains between 4275 - 4335, bullish above and bearish below it.

Credit Market - Long-term Chart

NQ Guidelien For Friday

On Thursday NQ opened with a large gap-up but then traded in a sideways fashion with the close at the day high and pushing above key resistance level 4330.

If NQ can trade and stay above 4330 it is an indication NQ is heading up towards 4500, but next resistance resides at 4430 then 4480.

Inability to break clear above 4430 has the potential to attract short-selling, with first support at 4200 then 4100.

NQ Guideline For Thursday

On Wednesday the Plunge Protection Team were finally able to push the market up in the afternoon and avoid a late day sell-off.

Wednesday was also the second pullback-up day in the ongoing daily downtrend, so making Thursday a potential end of a pullback consolidation period and the resumption of the downtrend.

Key resistance price zone for NQ on Thursday will be 4275 - 4325 area, key support is 4200.

-- Failure to break and more importantly to stay above 4325 could attract heavy selling pressure that could easily overwhelm the PPT.

-- Breaking below 4200 is likely to trigger major algo selling pressure with very critical lower support at 4000. Breaking below 4000 is an indication NQ is in crash mode, lower support is 3700.

Dow Weekly Chart

NQ Guideline For Wednesday

Non-stop buy programs failed to hold the market up on Tuesday as selling came back in with a vengeance at the end of the day. Although the low of the day remained above Monday's low it was a bearish day.

Buy programs are at it again overnight on Tuesday night that is likely to continue into the Wednesday's market open and likely results in a huge gap-up open. 

As long as NQ remains above Monday low selling pressure is likely to be contained. NQ needs to break below Monday low to trigger another round of liquidation selling.

NQ Guideline For Tuesday

A massive global stock market crashed on Monday with the Dow down over 1000 points near the open before the Plunge Protection Team managed to push it all the way up to almost closing the gap. 

After a massive gap-down open NQ rallied to close the gap before dropping back down into he close but stayed above the low of the day.

-- As long as Monday's low is not violated, look for NQ to trade sideways or rally.

-- Breaking back below Monday low is likely to trigger another round of massive algorithm sell programs, next support is 3700

NQ Guideline For Monday - Real Crash

The market crashed on Friday and Asian stock market is currently crashing during their Monday trading session with China down over 9% so far at this time.

 

Unless global central bank intervene massively before the US market open, look for the US market to crash again on Monday.

Key price level to watch for on Monday will be Friday's closing price. Below Friday's closing price NQ should continue to sell-off.

NQ Guideline For Friday

Dragged down by global stock market selloff major wall street  indices also sold off hard on Thursday. NQ dropped over 100 points and close at the day low an indication the bull capitulate into the close, a very bearish day.

A large range day often requires consolidation so Friday has the potential to be a sideways consolidation day. However, with so much technical damage done on Thursday another trending down day on Friday should not surprise us

Key inflection price level for NQ on Friday will be 4400.

-- Selling pressure should continue below 4400, next support is 4340, 4300 and then 4275.

-- Selling pressure should subside above 4400, first resistance is at 4440.

NQ Guideline For Thursday

A wild swing day in the market on Wednesday with a sharp decline in the morning followed by a sharp mid-day rally, then a sharp selloff in the afternoon with a close near the low of the day, setting up for a bearish day on Thursday.

Key support level to watch for on Thursday will be 4500.

-- Selling pressure should intensify below 4500 with the next support at 4480 and then 4440.

-- Ability to stay above 4500 could result in profit-taking rally up to 4550 resistance.

Vietnam devalues dong currency, matching Beijing's yuan move

NQ Guideline For Wednesday

Dragged down by the collapsing Chinese stock market NQ simply traded sideways on Tuesday. With Chinese stock market crashing again on Wednesday China time look for the impact to be felt in the major indices here. 

Unless the Fed buyers can have access to unlimited funds to push the market up look for the major indices including NQ to sell-off hard on Wednesday.

Key price level for NQ on Wednesday remains at 4540.

-- A clear and sustained break below 4540 is likely to trigger another round of liquidation sell-off, with first support at 4500

-- As long as NQ can stay above 4540, sellers should remain on the sideline.

NQ Guideline For Tuesday

NQ opened with a gap-down but remained above 4500 key support level. After trading sideways for a short period of time large buy programs hit the market, pushing NQ up to 4540 key resistance.

After a brief pullback, another large buy programs hit the market again pushing NQ above 4540 key resistance and stay above it all day long with a close at the day high.

NQ uptrend should continue on Tuesday as long as any pullback down-move does not violate key support, and on Tuesday that key support will be 4540, and the next upside target is 4620 but resistance are at 4580 and 4600.

NQ Guideline For Monday

NQ traded sideways on Friday, setting up a possible trending move, the direction would depend on where it trades in relation to support/resistance levels.

With the markets still trading inside their respective choppy zone on the daily chart, any market moving events can move the market either up or down, watch the price levels.

For Monday key price evels are 4500 support and 4540 resistance (4500-4540 trading range)

-- Bullish above 4540

-- Bearish below 4500

-- Choppy inside the 4500-4540 price zone

Chinese Yuan

NQ Guideline For Friday

A choppy sideways pattern for NQ on Thursday, with NQ rallying in the morning then reversed and sold-off in the afternoon.

The volatility should continue as selling pressure resulting from global credit contraction tends to overwhelm buyers causing the market to have wild intra-day swings, a clear signs that the market is topping, but not quite ready to sell-off. The markets needs to clearly break above the high to negate potential sell-off.

Key price level for NQ on Friday will be 4500. Note that Friday tends to be a choppy sideways type of day

-- Bullish above

-- Bearish below

NQ Guideline For Thursday

Following a second consecutive Chinese Yuan devaluation on Wednesday NQ opened with a gap-down that was immediately followed by a run-down to support and the 1:1 target before it reversed and spent the rest of the day rallying up to just below key resistance.

Key price level for NQ on Thursday will be 4500.

-- As long a price can stay above 4500 NQ is either going to be trading sideways or rallying back up, provided it can break above 4545 key resistance level. Next higher resistance is at 4600

-- Breaking back below 4500 will bring back sellers.

China devalued its currency for the 3rd time in three days on Thursday China time.

 

NQ Guideline For Wednesday

Following PBOC devaluation of the Yuan on Monday night the US stock market opened and sold-off on Tuesday, Although the close was off the low of the day it was nonetheless a down day in the market.

The PBOC again devalued the yuan for a second consecutive day on Wednesday China time sending Asian markets down, and the sell-off should spread into the US equity market on Wednesday, unless of course world central banks would come in to support the market overnight.

Key price level for NQ on Wednesday is 4500

-- Selling pressure should subside above 4500 with resistances at 4530 and 4545.

-- Selling pressure should continue below 4500 with first support at 4480, with the next support and a 1:1 target down at 4435 area.

NQ Guideline For Tuesday

Sunday night ramp-up was designed to caused a huge gap-up open on Monday in order to trigger short-covering rally, and that was exactly what happened on Monday.

Whether or not a follow-through buying would continue on Tuesday depends on where pullback-down support would come in.

Key pullback support for NQ on Tuesday would be 4530 area 

-- As long as pullback-down move can stay above 4530 NQ should resume its uptrend. Next target is a higher high above Monday high.

-- A violation of 4530 support is an indication NQ downtrend has resumed 

NQ Guideline For Monday

A typical Friday pattern for NQ on Friday, a sideways consolidation pattern, with NQ trending down in the morning then followed by afternoon rally. 

Key price level for NQ in the morning will be 4500.

-- Above 4500 short-covering should continue with the first resistance at 4530. Failure to clearly break above 4530 is an indication the current downtrend is going to resume without further pullback. Breaking above 4530 however implies a move up to the next resistance 4550.

-- Below 4500 the sell-off should resume, next support is 4440.

NQ Guideline For Friday

Following a failed ramp-up attempt by the Fed on Wednesday NQ sold off hard on Thursday dropping all the way down to just above 4500 support before profit-taking bounce price back up a little bit.

With a highly manipulated market, an employment report released before the open could cause a large gap at the open. The direction would depends on where the gap open will be, assuming there is a gap.

Key support and resistance for Friday will be 4500 support and 4600 resistance

-- Staying inside the 4500-4600 range could make for a choppy Friday.

--  Trading outside the range could trigger strong trending move, particularly if trading below 4500, with lots of stops to be has, it could trigger another round of selling algo, next target down is 4430-4440.

-- It would require massive intervention by the Fed to gap prices up above 4600 resistance in order to trigger short-covering rally.

Gold chart 

NQ Guideline For Thursday

A large gap-up open for NQ on Wednesday designed to trigger short-covering rally. The rally faded going into the lunch hour that lasted all afternoon into the close.

Key inflection price level for NQ on Thursday will be 4600. Unless NQ can break out above 4630 resistance or breakdown below 4575 support, look for NQ price action to be choppy. 

-- First resistance is 4630

-- First support is 4575.

NQ Guideline For Wednesday

NQ traded sideways all day on Tuesday, stuck between 4545 support and 4575 resistance, setting up for the next strong move away from the range, the direction depends on where it trades in relation to the 4545-4575 range.

Currently both the 60-minute time-frame and the daily chart time-frame are in a sell mode, likely to trigger a down day on Wednesday, but with a highly manipulated and a very active Fed buyers, anything is possible.

-- Bullish above 4575, with the next resistance at 4600

-- NQ is bearish below 4545, next lower support is at 4520 then 4500.

A clear break out of the range is likely to trigger a fast move to the next resistance or support 

A summary of Fed Projection

NQ Guideline For Tuesday

After trading sideways in the morning on Monday NQ suddenly broke below 4475 support level, triggered algo sell programs that quickly tank NQ down to key lower support 4550, briefly viloated 4450 support befor finding enough buyers to cause NQ to rally back up to broken support now resistance 4575, with the close just belowit.

Key inflection price level for NQ on Tuesday will be 4575.

-- Bullish bias above it, with first resistance at 4600. A clear and sustained break above 4600 is likely to trigger a short-covering rally.

-- Bearish bias below it with first support at 4550. A break-back below 4500 is likely to trigger another round of sell algos that can quickly tank NQ down to 4500 support.

Both the 60-min time-frame and the daily time-frame for NQ are currently in sell-mode (bearish) 

NQ Guideline For Monday

Following three up-days in a row, bumping up against strong resistance at 4600 price level, short-sellers and profit-taking caused NQ to pullback-down on Friday. 

As long as NQ remains below 4600 on Monday morning selling pressure should continue with key support at 4575. Trading below 4575 has the potential to trigger algo selling programs that can quickly tabk NQ down to either 4560 or to 4530 area.

Short-covering should continue above 4600 with resistances at 4630 and then 4685.