NQ Guideline For Friday

NQ dropped down to 4900 key support on Thursday and bounced off it closed at the open. A break would have been very negative.

 

With Friday as the last trading day of 2016 anything is possible as traders and investors would have to balance their books by the end of Friday's trading.

 

Key support for NQ on Friday will be 4900.

-- As long as 4900 is not violated selling should remains under control. If so we can expect either a sideways trading action or a rally.

-- A clear break below 4900 is not a good sign for the stock market. If so, look for another round of selling.

NQ Guideline For Thursday

Year end pension funds rebalancing activities continues to weigh heavily on the stock market on Wednesday. The activities may even intensifies on Thursday and Friday.

The Fed desperately needs to see the stock market close the year at the high, so they may engineer massive buying activities to counter the year end selling by pension funds. Whether or not they would succeed only time will tell.

 

On Wednesday NQ dropped down below key support which then triggered an avalanche of sell programs.

 

Key support for NQ on Thursday will be 4920.

-- As long as NQ can stay above 4920, selling should be under control. If so, NQ could either trade sideways or rally.

-- A break below 4920 could trigger another round of selling, and the next support is 4900, and 4900 needs to hold as a break could trigger an avalanche of selling. 

NQ Guideline For Wednesday

Massive buy program triggered right at the open pushed NQ into a new higher high but it failed to attract enough new buyers to keep the rally going as sellers sold the stock market hard ahead of potential heavy profit-taking selloff that could occur at anytime in the new year. NQ closed the day closer to the day low than the day high.

 

Key support for NQ on Wednesday will be 4945.

-- As long as NQ could stay above 4945 on Wednesday, selling should remain under control.

-- Should NQ breaks below 4945 it could trigger more selling. If so, the next support is at 4920.

 

NQ Guideline For Tuesday

Ahead of the long Christmas holidays weekend, last Friday NQ simply traded sideways, the eight days in a row trading just above breakout price level 4925 area, key support for NQ going forward.

 

With profit-taking not until the new year, and without much incentive for sellers to sell until the new year, NQ either continue to trade sideways or resume its rally, so far it had eight consecutive days of consolidation.

 

With most traders still out of the office this weeks, the market can continue to trade sideways.

Merry Christmas

With most traders out of the office for the Christmas holidays I don't expect much to happen on Friday.

 

With most investors waiting for the new year to take profit in anticipation of a much lower capital gain tax under President Trump, look for the market to either traded sideways again.

 

Merry Christmas

NQ Guideline For Thursday

Another sideways consolidation day for NQ on Wednesday and without buyers and without sellers, NQ can continue to trade sideways until next week.

 

NQ support on Thursday will be 4945.

-- But with most market participant out of the office for the Christmas holidays, the stock market can continue to be choppy and trades in a very narrow sideways trading range

NQ Guideline For Wednesday

Unprecedented amount of global credit creation by major world central banks helped push Dow closer and closer to 20,000. If central banks continues their current credit creation trajectory, currency collapse, also known as hyperinflation should push Dow up to the stratosphere very quickly.

We can see the evidence from one of the most recent currency collapse episode where Zimbabwe stock market index went up into the stratosphere within a very short period of time, see the chart below.

On Tuesday NQ simply traded sideways in a very narrow range as central planners simply bought mostly wall street bank shares that made up a big proportion of the Dow.

Key support for NQ has now moved up to 4945.
-- As long as NQ can stay above 4945, sellers will be kept under control, and NQ is likely either trades sideways or rally.
-- Should NQ trades below 4945 on Wednesday, selling could come in, lower supports are at 4925 and 4900.

NQ Guideline For Tuesday

Just a choppy sideways trading pattern for NQ on Monday. After a massive morning surge to higher high in the morning courtesy of central planner algorithm buy programs NQ pullback down. It is certainty not a good sign of things to come, an indication that deflationary forces is beginning to weigh heavily on the stock market.

4925 is key support price level for NQ on Tuesday.
-- NQ remaining above 4925 should keep selling in check, an indication NQ may either rally or trade sideways again.
-- If NQ should trade below 4925 selling could take NQ back down to 4900, a price level that should bounce NQ back up. However, should 4900 be breached, look for selling to accelerate.

NQ Guideline For Monday

NQ pullback down to just above key support level, 4900, on Friday, a price level that would be key on Monday.

 

Staying above 4900 implies NQ is going to rally back up without pulling back to lower price level. If so the next target is a higher high.

 

A sustained break below 4900 is an indication NQ is going to lower price evel before rallying back up again. The next lower support below 4900 is 4850, then 4800.

 

Santa Claus Rally Is Real

NQ Guideline For Friday

The stock market rally stalled on Thursday likely due to deflationary selling pressure that overwhelmed buy programs. However, as long as the major indices remains above support selling should remains under control.

 

Key support price level for Friday will be at 4900 on Friday.

-- As long as NQ stays above 4900 selling should remains under control.

-- A sustained break below 4900 could drop NQ down to lower supports, 4865, then 4840 and 4800.

 

War on cash continues: Australia seeks to remove $100 note from circulation. Australia looks set to follow in the footsteps of Venezuela and India by abolishing the country’s highest-denomination banknote in a bid to crack down on the “black economy”.

NQ Guideline For Thursday

In order to save whatever little credibility the Fed still has left they decided to raise interest rates and promised to do a few more in 2017 even in the face of massive deflationary forces.

Raising interest rates in an already accelerating deflationary environment just help to intensify deflation. The stage is now set for a global financial collapse, stock, bond, commodities, etc. Central planners is certain to intervene to support the market but eventually the natural forces of deflation would overwhelm central planners. Either they let the system collapses or they hyper-inflates the global fiat paper money system. 

 

In the short term the buying algorithm may be able to continue to push the stock market upward. For Thursday, as long as NQ can stay above 4900, the current rally should continue without any major pullback. But with the Fed December decision out of the way, anything is possible. The stock market can continue to go up or starts to selloff.

NQ Guideline For Wednesday

With the FOMC releasing its policy statement on Wednesday afternoon anything could happen but it is certain that the Fed is going to continue to trigger non-stop buy programs again. Whether or not they could overcome intense deflationary selling if they in fact raise interest rates on Wednesday, only time will tell.

The bond market continued on sold off on Tuesday, and Chinese Yuan continued its rapid decline, a perfect setup for massive stock market collapse, and it is just a matter of time. Chances are central planners may want to wait until Trump has been inaugurated before they pull away support to the market and let the market collapse.

 

Support for NQ on Wednesday will be 4900. As long as NQ remains above 4900 selling should remains under control and NQ should continue to rally upwards. However, with all the major stock indices in extreme overbought territory there is a always a chance selling could come unexpectedly and from nowhere.

NQ Guideline For Tuesday

Ahead of the FOMC meeting this week NQ traded sideways in a very narrow range. With buy programs certain to go into full force look for the stock market to continue to go higher regardless of what the Fed decides to do and announces on Wednesday.

 

Key inflection price level for NQ on Tuesday will be 4865. First resistance is 4880 and first support is 4840.

-- If NQ can clearly break above 4880 it has the potential to trend up, with the next upside target of a break above Friday swing high.

-- Staying below 4865 implies continual sideways consolidation pattern.

 

Mortgage rates has risen very sharply, very bearish for the economy and the stock market. On Friday, the average lender hiked the 30-year fixed rate conventional mortgage for top tier borrowers to 4.25%. According to Freddie Mac, the average 30-year fixed-rate mortgage rate rose 5 basis points to 4.13% during the December 8 reporting week, the highest since July 2014: