NQ Guideline For Friday

As expected, NQ continued to trade sideways in a narrow trading range above key support  on Thursday. The pattern should continue on Friday as most traders are out of the office until the new year.

 

Key support for NQ going into Friday remains at 6435. As long as NQ stays above 6435 it should continue to trade sideways or rally up, with resistance at 6465.

NQ Guideline For Thursday

With most traders still on holidays until the new year, the market simply traded sideways in a narrow range on Wednesday. The pattern should continue on Thursday.

 

Key support remains at 6435 for NQ

NQ Guideline For Wednesday

With most traders still out of the office for the Christmas holidays the stock market traded sideways in a choppy narrow range trading pattern. This type of pattern should continue until the new year when most traders are back to work.

 

NQ opened with a gap-down, then dropped down to critical support 6435 in the morning on Tuesday before rallying back up to the open. As long as NQ can stay above 6435 it should remains in a choppy sideways mode, or may rally back up towards the recent high.

 

Trading below 6435 is a bearish sign, especially because this is a bullish period of the year, the Santa Clause rally timeframe.

NQ Guideline For Friday

With most senior traders out of the office for the long Christmas holidays weekend NQ simply traded sideways in a narrow range on Thursday.

 

The price action is likely to continue on Friday as most traders has already left the office. As such we could see a very choppy and narrow trading range on Friday. Having said that, thin market is when price swing can get very exaggerated, especially if it is to the downside.

 

Key NQ line in the sand price level on Friday will 6500, bullish above bearish below it..

 

NQ Guideline For Thursday

Another sideways consolidation day for NQ on Wednesday, with the open above support then sold off hard in the morning dropping down to just above breakout price level, 6450 before they were finally able to rally the market back up again.

 

Wednesday was the second pullback day following Monday's breakout day, that makes Thursday a key day for NQ to rally again and close in in the green. Failure to do so implies weakness and could attract enough selling to push the market back down.

 

With many investors and funds waiting for the new year to take profit, selling should be under control. However, having said that, with the tax reform negotiation out of the way, anything could happen. 

 

On the short term timeframe, key line in the sand for NQ on Thursday will be 6500, bullish above, and bearish below it, with very important support price level at 6450

NQ Guideline for Wednesday

NQ pullback down from overbought condition on Tuesday and closed down for the day, a down day for NQ on Tuesday.

 

With the tax bill negotiation still ongoing, the stock market should continue to be extremely manipulated on Wednesday and thus could be volatile.

However, key price level to watch for on Wednesday for NQ will be 6475 support and 6505 resistance.

 

A sustained break out of he 6475-6505 trading range could trigger a strong move out of the range, especially if the break is to the downside.

 

A break to the upside may trigger a choppy move up as NQ is now still in an overbought conditions.

NQ Guideline For Tuesday

On Monday NQ opened with a gap-up to upside targets. Selling did not come into the market as NQ remains above the open all day. It simply spent the rest of the day trading sideways in a very narrow range.

 

With NQ now deep in overbought territory, it may just continue to chop around in a sideways fashion if it remains above key line the sand of 6535 on Tuesday.

 

A break below 6535 however could trigger some selling, support is at 6490.

 

In order to avoid government shutdown there is a need to pass the Trump tax plan by Friday..

NQ Guideline For Monday

After pulling down to support soon after the open on Friday NQ rallied all day into the close, a large breakout up day.

 

NQ closed at the day high on Friday. A close at the day high at the end of a large up-trending day implies the shorts were capitulating at the close, thus setting up a gap-up reversal day on Monday.

 

If so, with a gap-up opening, NQ would open with a gap-up, then immediately reversed back down, with the opening price as key price level after the open.

-- However, with a gap-up open, if NQ can remains stays above the opening price, it should rally in the morning, upside targets are anywhere between 6610 to 6650.

-- If, after opening up above prior day close, price drop down below the open, it will imply NQ is reversing and trending down in the morning, with first support at gap-close. Breaking below gap-close implies NQ is going down to lower support, which is at 6480.

NQ Guideline For Friday

As usual, after making a higher high soon after the open on Thursday, selling came but on Thursday selling was heavier than usual, and all the major indices close down for the day.

 

NQ dropped down below key support level, which is at 6420 for Friday.

-- Without rallying back above 64520 on Friday selling could be back, If so supports are at 6365 and 6350.

-- Trading back above 6420 is an indication it is going for a higher high before selling come back in.

 

As always, be on a lookout for the usual Friday trading pattern, a sideways consolidation pattern as traders balances their books ahead of the weekend.

NQ Guidline For Thursday

The FOMC raised short term interest rate on Wednesday in spite of a weakening real economy in order to try to stop their paper money system from a continuing collapse, as we can see from the meteoric rise of Bitcoin against all paper currencies.

The Fed action is likely to be followed by other central banks. The actions of central banks is certain to cause a massive recession/depression, but it is a choice between currency collapse or a recession/depression.

 

The are likely to continue to buy the stock market for a while longer, but only time will tell when selling would starts to overwhelm their actions.

 

Key price level for NQ on Thursday will be 6405.

-- As long as NQ remains above 6405, NQ should continue to rally to another higher high before selling comes back in..

-- Trading below 6405 is a bearish sign, next support is 6395, then 6350

FOMC Policy Decision Announcement On Wednesday

Ahead of the FOMC announcement on Wednesday NQ traded sideways in a narrow range on Tuesday.

 

With the market pricing in almost a 100% probability that the Fed will raise short-tem interest rate on Wednesday, nothing much is going to happen if the FOMC in fact raise interest rate. What would move the market will be if the FOMC does not raise interest rate..

 

If the FOMC does what is expected the stock market may continue to trade sideways in a topping pattern as investors will wait for the new year to sell due to tax reason.

 

Key support for NQ going into Wednesday will be 6395.

-- As long as NQ continue to trade above 6395  NQ should continue to trades sideways and up. Next upside target is a break above Tuesday's high

-- Breaking below 6395 could bring in seller, next support is 6350

  

NQ Guideline For Tuesday

Massive buy programs was triggered ahead of the FOMC meeting on Tuesday/Wednesday. NQ opened above key support price level on Monday, then rallied all day closing at the high of the day, suggesting.

 

They may just let the equity market just traded sideways on Tuesday, but we must not forget the fact that they could easily trigger another massive buying binge on Tuesday.

 

Key support going in to Tuesday trading session is 6385.

-- As long as selling in NQ does not cause a breach of 6385, NQ should either trade sideways or rally to another higher high before selling come back in..

-- NQ needs to break below 6385 for more selling to come in.

 

The Chicago Board of Options Exchange started trading a bitcoin derivative contract on Sunday evening. Bitcoin futures contracts opened just above US$15,000 but closed Monday at $18,545 US.

NQ Guideline For Monday (March contract)

Fed engineered gap-up opening on Friday failed to trigger any substantial short-covering and NQ traded down in a very nice and organized a-b-c- fashion down towards gap-closed, closing just above key support price level, 6350 on the March contract.

 

For Monday as long as NQ can remains above 6350 NQ could rally back to at least test Friday swing high.

 

Breaking back below 6350 is bearish and it could trigger a round of selling, first support is 6300 then 6280.

 

Bitcoin Futures Contract started trading on the CBOE Sunday night, the outcome is not what Central Banks wanted, instead of selling off, Bitcoin rallied sharply.

NQ Guideline For Friday (December Contract)

After a quick pullback down to support NQ rallied but failed to break through strong resistance at 6330 which shall remain key resistance to break if NQ is going to go higher to the next resistance price level at 6370-6380 area.

 

Failure to break above 6330 could attract some selling that could overwhelm the buyers, if so first key support is now at 6300. A clear break below 6300 could tank NQ quickly down to the next support level at 6200.

 

Next week FOMC meeting is very important, their decision on interest rate could cause a major move in the financial market.

NQ Guideline For Thursday

On Wednesday NQ opened with a gap-down then immediately reversed and rally all day successfully broken above key resistance 6290, which should then serve as key support for Thursday,.

 

It has broken decisively above 6290 in overnight trading, and if it can stay above 6290 by the opening bell on Thursday we could see NQ rallying up to 6330. Then if 6330 is broken, the next upside target is anywhere between 6370 to 6380 price zone before major selling can push NQ back down.

 

If, on the other hand NQ fails to break above 6330 area, selling could again overwhelm the buyers, and a retest of the recent lows is likely.

 

Both President Trump tax plan and the FOMC decision on interest rate next week has the potential to crash the stock market.

NQ Guideline For Tuesday

A gap-up opening on Monday designed to trigger a short-covering rally failed miserable on Monday as the stock market instead of rallying , sold off hard, particularly for the growth stock represented by Nasdaq. This is a very bearish sign for the stock market as December is usually a very bullish month,  and it is an indication the market top may be coming very soon, if it is not already in.

 

 Key price level for NQ on Tuesday will remains at 6325 for Tuesday.

-- Trading below 6325 is going to keep selling pressure at elevated level and could further tank NQ down to lower level, and the next strong support is not until 6180.

-- If they are able to push NQ back to above 6325 and keep it there after the open on Tuesday it should keep selling under control.

NQ Guideline For Monday

After making a lower low on Friday NQ then spent the rest of the day traded sideways in atypical Friday price pattern as traders balanced their books for the weekend.

 

With the first week of the month having a bullish bias, look for the stock market to continue to make a higher high, or trades sideways before dropping back down.

 

However, a failure to rally or at least trades sideways this coming weeks is a sign of weakness. If so, we can expect a sharp drop to come soon. 

 

Key short term inflection price level for NQ on Monday will be 6325

-- Resistance is at 6375

-- Support is at 6375

 

Bitcoin continues to defy the so called experts, as it continues to rally to its fair value price of about $100,000 at this moment.