NQ Guideline For Wednesday

The stock market should continue to be manipulated upwards by central planners at least into the end of the year. However, with the market in overbought territory and forces of deflation continuing to weight heavily on the stock market, we can expect some selling to come in after some sustained  buying binge.

On the short term time frame, key price level for NQ on Wednesday will be 4880.

-- Trading above 4880 should induce some shorts to cover.

-- If NQ remains below 4880 it could attract some selling before buy programs kicked in again to push the market up. The first support below 4880 will be 4855, then the next support is at 4830.

NQ Guideline For Tuesday

With the usual bullish bias going into the end of the year being supported by massive QE program by the ECB and massive QE and helicopter money programs in Japan designed to keep international capital flowing into the US dollar assets should be able to prevent the USD from collapse and keep the stock market elevated into the new end of the year.

However, even with the best efforts of central planners, anything is possible, and the market can do anything it wants at any time. Global deflationary forces could unexpectedly overwhelm central banks and collapses the market.

 

On a short term intraday time frame, key price level for NQ on Tuesday will be 4855 support and 4880 resistance.

-- If NQ remains above 4855 on Tuesday NQ should continue to rally with key resistance at 4880. Failure to break above 4880 should keep NQ trading in a choppy narrow range trading zone. A break above4880 should trigger some short covering activities.

-- If NQ breaks below 4855 some selling activities should tank NQ down to the next support level at 4820.

NQ Guideline For Wednesday

The battle between the forces of deflation and central banks continues on Tuesday, and should continue into the future until the whole monetary system based on fiat paper money totally collapses (hyperinflation), or until some sane forces takes control of the system before it is too late.

Coordinated unprecedented money printing and helicopter money provision by major central banks, the Fed, the ECB and the BOJ continues, designed to keep the US dollar from collapsing and also to keep the stock market from imploding. No one knows how much longer the system can keep going until the whole system collapses. In the mean time, the stock market continues to rally, usually choppy and narrow range.

 

On the short term time frame, key price level for NQ on Wednesday will be 4860, as of the close on Tuesday, acting as support for Wednesday.

-- If NQ can stay above 4860 on Wednesday the choppy up[trend should continue

-- If NQ cannot stay above 4860 it could trigger some selling activities. If so, next support is 4830, then 4800.

NQ Guideline For Tuesday

A narrow range choppy up day for NQ on Monday. As long as NQ remains above 4800 a choppy sideways trading pattern or a choppy up-trending pattern should be the norm. The Fed directly or indirectly should remains the main buyer of equities.

 

On the short term intraday timeframe, key support for NQ on Tuesday will be 4830 support and 4860 resistance.

-- As long as NQ remains above 4830, uptrend remains alive., and key resistance is 4860.

-- If NQ should break below 4830 the next support will be 4800.

NQ GUideline For Monday

Without any buyers other than the Fed, and without any short-covering activities, NQ simply traded sideways in a narrow range on Friday.

 

The choppy sideways pattern should continue unless they are willing to commit a lot of liquidity to keep the stock market up because the speed of a collapse in bond prices is very deflationary and weigh heavily on the stock market.

 

Key price level for NQ going into Monday will be 4800 support.

-- As long as NQ can stay above 4800 on Monday, NQ either continue to trade sideways or rally.

-- Breaking back below 4800 is going to attract selling,  Lower supports are 4760 and 4740.

NQ Guideline For Friday

Relentless buy programs were finally able to push NQ above 4800 key resistance on Thursday and were finally able to get some shorts to cover. The buy programs continued all day to get NQ to close at the high of the day, in order to create a bullish-looking technical conditions.

 

Key resistance for Friday will be 4830.

-- If NQ can break and stay above 4830 we could see another slow up day on Friday simply because many sellers would just wait to sell at a higher level, or waiting to sell when NQ break-back below 4800 price level now an important support level.

-- A break-back below 4800 is bearish and could set up another rounds of selling.

NQ Guideline For Thursday

A choppy up day for NQ on Wednesday, stalled just below 4800 key resistance level. 4800 will be key price level for Thursday.

 

Ability to break clear above 4800 has the potential to reverse some algo traders from sellers of bounces to buyers. However, deflation-related selling activities could come back at any time and without much warning and overwhelm central banks buying programs.

 

International reserves has decline by over $1 trillion dollars since peaking 2014. The world is sitting at the edge of a massive deflationary cliff.  Even though Central Banks are desperately trying to keep the world’s financial assets from plunging down into the great depression below, signs suggest they are losing the battle, unless of course they are willing to create from nothing massive amount of currency and risk hyperinflationary currency collapse.

NQ Guideline For Wednesday

A narrow range up day for NQ on Tuesday. However, with the global deflationary forces continuing to intensifies, the pause in the stock market selloff is just temporary, just a setup for the next selling that is going to overwhelm central banks buying programs. Global bond selloff that was triggered by Trumps election victory has caused interest rates to substantially increase across the board and that is very deflationary.

On the short-term timeframe, NQ inflection price level for Wednesday will be 4760, resistance is 4800 and support is 4700.
-- There will be a lot of seller waiting to sell at 4800. Unless they can push NQ substantially above 4800, sellers would come back to sell.
-- NQ should remains under heavy selling pressure below 4760 but it will need a clear and sustained break below 4700 to trigger another round of liquidation selling.

NQ Guideline For Tuesday

Deflationary forces continued to drag the market down on Monday. Although they are able to get the Dow into new high the intensifying deflationary forces is likely to exert itself until central banks either loses control and let the market forces take the market wherever they may want to go or hyperinflate the currency.

 

The battle central banks and deflation should continue a while longer, expect the markets gyration to get more intense going forward.

 

Key price level for NQ on Tuesday will remains at 4700.

-- A clear and sustained break below 4700 has the potential to tank NQ quickly down to 4500 - 4550 support zone.

-- Selling pressure should be under control if NQ can remains above 4700 price level. resistance are 4740, 4760, 4800.

 

The 35-Year Bull Market in Bonds Comes to an End. More than $1 trillion has fled bond market as investor worry about interest rates under Trump presidency

 

NQ Guideline For Monday

NQ remained above 4700 support on Friday which provided much needed relief from selling pressure. NQ then simply traded sideways in a relatively narrow range.

 

With Trump's presidential victory the stage is now set for massive debt-deflationary collapse and at the same time the Fiat currency hyperinflationary collapse which has now started in many emerging market and eventually come to the United States in not so distant future.

The global bond market has started to collapse, including the US bond market. Within a span of just a few days since the presidential election the 10-year US treasury yield has spiked from a low of 1.5% to over 2.00%, thus draining much needed liquidity.

 

In their attempt to counter deflationary forces, central banks are sure to create massive amount of helicopter money, setting a stage for hyperinflationary collapse of global fiat currency system. We should see asset price deflation & goods and services hyperinflation happening all at the same time. In such as scenario gold and silver is going to shine.

On the short-term 5-minute timeframe, key price level for NQ on Monday will be 4740.

-- Sellers should remains relatively inactive above 4740, next resistance is 4800.

-- NQ could come under selling pressure below 4740, but it would need to break below 4700 to trigger another round of algorithm liquidation selling activities, next support is 4500-4550.

NQ Guideline For Friday

On Thursday, the Fed were caught unprepared in the early morning when massive selling hit the NQ market, tanking NQ down all the way to 4700 support, briefly spiked below 4700 before buy programs were able to stabilize the market.

 

Selling in the technology is likely to continue going forward as President Trump trade policy (tariff) come into effect in the new year. Tariff  is bad for everyone and is very deflationary, so look for forces of deflation to accelerates going forward.

Key price level for NQ on Friday will be 4700 support.

-- Ability to stay above 4700 may relieve selling pressure.

-- A break down below 4700 could tank NQ with lower supports at 4500-4550 area.

NQ Guideline For Thursday

As Trump victory started to seems imminent the stock market started to crash. Panicked central banks started to intervene, first just halting the collapse and then eventually were able to erased all the losses by the opening bell on Wednesday.

Buy programs continued all day just to hold up the stock market. With Trump election victory the forces of deflation is certain to accelerates. A trump victory also assured that helicopter money is on its ways and soon. The Fed is now ready to create unlimited about of paper currency to directly buy the treasury bond issued by the government.

 

The beginning of the end the global paper money regime is here, and now. How fast will the paper money regime collapses, it is difficult to predict. The speed will directly depends on how much paper currency they creates.

 

Key price level for NQ on Thursday will be 4800, now acting as support.

-- With the Fed certain to continue to support the stock market for a while longer, look for the stock market to rally for a while longer. To do NQ needs to stay above 4800 as a break back below 4800 could attract more selling.

-- NQ would be under selling pressure below 4800.