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.