NQ Guideline For Wednesday

The stock market sold off hart in the morning on Tuesday but late day buy programs managed to pushed the market back up.

 

NQ dropped down to support, prior swing high (January 20) before selling was overwhelmed by buying. Afternoon buy programs managed to pushed NQ back up to close the gap, setting up either more rally on Wednesday or a resumption of pullback down mode. The key is where it trades in relations to its inflection price level.

 

For Wednesday key inflection price level will be 5125 for NQ.

-- A sustained break above 5125 should cause NQ to rally to its next resistance 5145.

-- Staying below 5125 could trigger another rounds of selling activities, support is at Tuesday swing low.

 

President Trump bans immigration from several countries, fires acting attorney general for refusing to enforce ban.

NQ Guideline For Tuesday

The stock market sold off sharply on Monday, with NQ opened with a small gap-down but then sold off immediately, breaking through multiple support. NQ dropped down to just below 5100 key support price level before profit-taking caused NQ to trade sideways the rest of the day.

 

With both the S&P 500 and the Dow recent higher high came with a very pronounced bearish divergence on the daily chart, the selloff may not be over in just one day. Whether or not we would get a consolidation day on Tuesday before selling resumes, only time will tell.

 

Key price level for NQ on Tuesday will be 5100 support.

-- If NQ can stay above 5100 on Tuesday, look for NQ to either trade sideways or rally. First resistance is 5140 then 5155.

-- A sustained break below 5100 is an indication we would get another large down day. If so lower supports are 5080, 5060 and 5000.  

NQ Guideline For Monday

The general equity market, including NQ simply traded sideways in a very narrow trading range on Friday. Until we get a decent multi-day pullback down move on the daily chart the market is going to continue to chop its way upward.

 

On the 5-minute timeframe, inflection price level for NQ on Monday will be 5155, with the first support at 5140 and first resistance at Fridays swing high 5168.

-- If NQ can stay above 5155 at and soon after the open, the upside target is a break above Friday swing high before profit-taking sets in..

-- Trading below 5155 at the open or soon after the open is an indication NQ is likely to go down to 5140 support. Should that support level get violated, lower supports are at 5125 then 5100.

 

The main stream media is now obsessed with President Trump temporary ban on people coming into the US from certain countries.

NQ Guideline For Thursday

After almost two months trading in a narrow range, sideways consolidation , on Wednesday both the Dow and the S&P 500 finally broke out of the range, breaking to the upside. As long as they can stay above the breakout price level the uptrend is going to continue for a while as short-sellers scramble to cover their shorts.

 

All major indices are now in overbought territory but short-covering activities could continue to push the indices into more overbought territory before they tops and profit-taking activities stops and even reverse the rally.

 

On the short-term time frame key price balance point on Thursday will be 5140.

-- Short-covering activities is likely to cause a gap-up opening on Thursday, if so, look for the rally to continue with or without a pullback. As long as pullback remains above 5140, the uptrend should continue to another higher high.

-- Trading below 5140 is going to run over some stop losses and can cause some selling. If so the next support is 5100.

 

NQ Guideline For Wednesday

On Tuesday NQ finally breakout of its trading range and trend up all day into a new higher high. It was the largest trading range in days. S&P 500 made a new high before retreating. Dow failed to make a new high.

 

Very often during the current rally, after an up day like on Tuesday NQ would trade sideways for days. Whether or not Wednesday will be a choppy sideways day only time will tell.

 

Key price level for NQ on Wednesday will be the 5100 whole number resistance.

-- Trading back above 5100, if it can sustained a break above 5100 could trigger another round of buying.

-- Failure to break back above 5100 is an indication NQ is back into choppy sideways mode, first support is at 5080

 

President Donald Trump shows off the executive order reviving the Keystone XL pipeline, signed on Tuesday.  (Evan Vucci / AP) 

NQ Guideline For Tuesday

On Monday, President Trump first day as President, the stock market still continued to traded sideways in a choppy narrow range trading pattern. Without buyers with most funds and investors already mostly long the market, with no one bailing out of their long position yet, the market could continue to chop around.

 

However, with China as the main target of President Trump economic policy, we could expect China to take the first offensive financial move by devaluing its currency to cause the United States stock market to crash.

On the short term 5-minute time frame key balance price level for NQ on Tuesday will be 5055, first resistance is 5075 and first support is 5030.

NQ Guideline For Monday

With most traders busy with Donald Trump presidential inauguration on Friday, the stock market simply traded sideways in a narrow trading range.

Now that Trump inauguration is out of the way the stock market can move out of the current trading range. Although the stock market is in overbought conditions on the daily chart and is vulnerable to some sharp selling, any selloff is sure to attract buyers until key support is broken to the downside.

 

For NQ the key support remains at 5000. with the Dow and the S&P both remaining above their respective 50-DMA support.

 

On the short term intraday 5-minute time frame, key price level for NQ on Monday will be 5060 with 5045 as key support.

-- Trading above 5060 is an indication NQ is still going to target higher high, a break above Friday swing high before profit-taking selling pressure pulls NQ back down.

-- Trading below 5060 implies a pullback down to first and key support at 5045. Should selling breaks clearly below 5045 the next lower support level where buyers come in is 5000.

NQ Guideline For Friday

Friday will be Donald Trump's inauguration day as president of the United States. As such, the market may be choppy, and anything is possible.

 

Important inflection price level for NQ on Friday will again be 5045, first support is 5025. 

NQ Guideline For Thursday

Not much happened in the stock market n Wednesday. NQ traded sideways in a very narrow range, an indication traders and investors are going to wait for President Trump to take office before making a big move.

 

Key support for NQ on Thursday will again be 5045. Again, it is also possible the market may just trades sideways until Trump inauguration.

-- Bullish above 5045, next upside target is 5080.

-- The next support below 5045 is 5025.

NQ Guideline For Wednesday

A pullback down day for NQ on Tuesday. NQ opened below key support then traded down to lower support 5025 before rally back up to retest broken support at 5045.

 

Above 5000, NQ is still bullish and above breakout price level.

 

Key price level for NQ on Wednesday will be 5050 resistance and 5025 support.

-- A sustained break out of the 5025 - 5050 trading range will cause a trending move in the direction of the break. On a sustained break below 5025, the next lower support is at 5000, and a sustained break above 5050, the next resistance is at 5080.

-- A false breakout will cause a fast reversal move.

 

Ahead of Donald Trump inauguration on Friday, the market can get choppy.

NQ Guideline For Tuesday

The stock market was closed on Monday for the Martin Luther King holidays. The stock market will reopens on Tuesday.

 

NQ remains in buy mode on the daily chart, but both the Dow and the S&P 500 have been trading sideways for weeks, the rally momentum has stalled, and unless they come up with massive buy programs, the forces of deflation is going to overwhelm the buyers, but it is very likely they are not going to pull out their support prior to the Presidential inauguration on Friday.

 

On the 5-min chart, key support for NQ on Tuesday will be 5045

-- Above 5045 the rally is going to continue, targets are 5080 to 5100.

-- Trading below 5045 implies NQ is going to pullback down to lower support, at 5025.

NQ Guideline For Friday

On Thursday, NQ pullback down to re-test the breakout price level, prior swing high 4995, December 2016 high, which is now key support level. As long as NQ continue to trade above 4995 the bias is still to the bullish side.

The successful re-test of 4995 support on Thursday is setting up a fast move up to the next target/resistance zone, 5080-5100. As long as NQ continues to trade above 4995, the above target is remains valid.

 

However, breaking back below 4995 is bearish, and very likely to trigger sharp and large decline to 4850 - 4900 is a very short time ( 2 to 3 days)

 

Key inflection price level for NQ on Friday will be 5025.

-- NQ is bullish above 5025 on Friday. If so, the next upside target is 5060 - 5080 before profit -taking could push price back down.

-- Breaking back below 5025 implies NQ is going back down to retest support 4995-5000.

NQ Guideline For Thursday

Larger cap stock in the Dow and the S&P 500 continue to trade sideways on Wednesday while Nasdaq attempted selloff following Trumps speech was aggressively bought, with NQ making a new higher high and then closing at the high of the day.

With the Fed unwilling to let the market drop the stock market is likely to continue to either trade sideways for lack of new buyers or continue to rally in a choppy way.

 

Key price level for NQ on Thursday remains at 5030.

-- If NQ stays above 5030 on Thursday it should continue to rally to a new higher high without a larger pullback down move.

-- Breaking below 5030 implies a consolidation pullback down move before rallying back up again. The next support below 5030 is 5000. 

NQ Guideline For Wednesday

Without buyers left to buy the stocks except the Fed buying algos, the big cap stocks are just trading sideways while the smaller cap stocks in Nasdaq simply stairs-step upward in a very narrow range.

 

The stock market is clearly in a topping pattern, in overbought condition on the daily timeframe, and looks ready to drop down at any time. When it does, and once the major indices break below key support level, the Fed may get overwhelmed by avalanches of selling.

 

But for now the major indices such as the Dow, the S&P500 and NQ are still trading above their key support level. as such, selling remains under control.

 

Key short term 5-minute timeframe support for NQ on Wednesday will be 5030.

-- As long as NQ can stay above 5030, it could continue to chop its way to another higher high.

--  A break below 5030 implies a larger pullback, next support is 5000.

NQ Guideline For Monday

Massive buy programs triggered right at the opening bell and continued all day managed to pushed the stock market up on Friday with NQ rallying into a new higher high, a large up-day for NQ.

 

Without any major surprised market-moving news, the stock market rally should continue with or without a pause or consolidation.

 

Key price support level for NQ on Monday will be 4995.

-- If NQ remains above 4995 on Monday the rally should continue to target a new higher high before profit-taking selling comes in.

-- A break below 4995 is an indication the rally is in a pause mode. If so, look for NQ to drop down to a lower support at 4960.

 

The democrats is trying everything to prevent Trump from becoming President.

NQ Guideline For Friday

After making a new high at the beginning of December the Dow has not gone much anywhere. It has been trading sideways in a narrow range, look ready to dropped down hard.

 

Attempted selloff on Thursday was met with massive buy programs, but selling is likely to overwhelm buyers unless they come in with overwhelming buying power.

 

They managed to keep NQ rally going on Thursday, with NQ closing near the day high. With Friday normally a sideways choppy day look for NQ to be choppy unless big algo buy programs backed by free money hit the stock market.

 

The 5-minute time frame support for NQ on Friday will be 4940.

-- Trading above 4940 would keep selling mostly under control.

-- Breaking below 4940 could trigger some selling, next support is 4920 then 4900.

 

Sears is closing 150 stores

Sears announced a second wave of store closures on Wednesday, bringing the total number of closures scheduled for early 2017 to 150.

 

NQ Guideline For Thursday

A second up-day in a row following a sharp end of the year 2016 sell-off. NQ is now back up above key 4900 price level, now support. A break-back below 4900 is going to be bearish for NQ and could trigger another round of selling.

 

Whether or not the Fed is going to continue their massive buy programs to push the stock market further up, only time will tell. But as long as NQ remains above 4900, sellers should remains under control, and NQ could continue to rally. 

 

On the 5-minute timeframe, key support for NQ on Thursday will be 4920.

-- Trading above 4920 implies NQ is likely to continue to go higher.

-- Below 4920 could trigger some selling, next support is 4900.

NQ Guideline For Jan 03/2017

2017 will be a year of massive chaos not only in the financial markets, but also chaos in the economy in general. The bond market collapse has begun, the high-end real estate collapse has begun, the stock market collapse should follow next followed by the dollar collapse.

 

On the shorter term time frame, January could be a bearish month as investors take profit. With everyone currently long the stock market and holding fat profit, look for potential mad rush to cash out to lock-in profit in anticipation of a lower capital gain tax from Trump Presidency.

 

We could see a flash crash unless the Fed is ready with unlimited amount of capital to absorb the avalanche of sell orders. However, with the stock market still in a very bullish mode on the long-term timeframe (weekly and monthly), unless critical support gets clearly breached, look for the stock market to bounce and rally again after the initial bout of profit-taking selling.

 

On the 5-minute timeframe, key support is at 4850 and key resistance is 4900.

-- A breach of 4850 support could quickly tank NQ down to 4800.

-- As long as 4850 support is not violated we can expect a rally in the market or a sideways consolidation. A sideways consolidation is not a likely event because traders and investors are initiating new positions.