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.

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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.