NQ Guideline For Wednesday

On Tuesday after opening above 5335 support and  trading above 5335 support in the morning but unable to gain any upside traction NQ eventually broke below 5335 support and remained below 5335 support for the rest of the day.

 

NQ has remained inside a trading range between 5310 support and 5360 resistance for the last six trading day, setting up for the next breakout, up or down.

 

Inflection price level for NQ on Wednesday remains at 5335, with resistance at 536- and support at 5310.

-- Trading below 5335 is bearish for NQ, unless NQ can break back above 5335 it could start to attract selling.

-- Breaking back above 5335 should keep sellers at bay. NQ may try to break above recent high before profit-taking selling come back in.

 

All eyes on President Trump on Tuesday night as he appeared before joint session of congress for the first time, just to hear what he has to say.

NQ Guideline For Tuesday

On Monday NQ opened with a gap-down below key support, but buyers were ready to buy and overwhelmed sellers. NQ slowly rallied back up above resistance and spent the rest of the day rallying up in a very and narrow range fashion.

 

On Tuesday as long as NQ can remain above 5335, the rally should continue, next upside target is a break above recent swing high. Trading back below 5335 is likely to trigger selling to take NQ down to retest support at 5310

 

The stock market is currently still in a strong and fast up-trending parabolic mode, the type of trend that could end abruptly and reverse sharply. The end of the current uptrend should be not too far away.

 

NQ Guideline For Monday

On Friday, after opening gap-down below prior day low, NQ slowly but steadily rallied all day, crossed key resistance on the short term 5-minute chat just before the close, setting up a gap-up and run-up trading pattern for Monday. Target for the next up day is a break above last week Thursday swing high.

 

The above scenario will be invalid is NQ opens and trade back below 5335, as trading back and staying below 5335 is an indication selling algorithm is coming back into selling mode. If so, the next support is 5310.

NQ Guideline For Friday

NQ opened above trading range high on Thursday but failed to stay above the high as NQ quickly dropped back into the range, signaling a false breakout situation and indicating a fast reversal back down as breakout traders get run over on the ways down. A usual target for a false breakout is a break below trading range low.

 

On Thursday, it was a classic textbook pattern. Once the downside target was reached, NQ reversed back to test the breakdown price level, 5335, from below.

 

5335 will now become key resistance for Friday.

-- Failure to break back above 5335 is an indication selling programs could come in to sell, downside target is Thursday swing low.

-- Breaking back above 5335 is an indication NQ is going to rally back to above Thursday falsebreak swing high. 

NQ Guideline For Thursday

NQ remained inside a narrow trading range between 5335 and 5355 on Wednesday. All the major stock market indices remains in a parabolic move up, setting up a blow-off top.

 

A blow-off top usually ends suddenly and reversal will be sharp and relentless as overleveraged traders and investors get forced out of their long position and get liquidated.

 

On the short term time frame, key price levels for NQ on Thursday will be 5335 support and 5355 resistance. A sustained break could trigger sharp moves in the direction of the break

 

Margin debt is the loans banks and brokerages make to investors, using their stock- and bond-holdings as collateral. High level of margin debt foreshadows market collapse. It peaked in March 2000, congruent with the market’s March 24 top and subsequent 49% decline. And it peaked again in July 2007, a few months before the market top in October.

NQ Guideline For Wednesday

After opening with a gap-up and then trend up in the morning NQ traded sideways for the rest of the day. All the major equity indices are in a parabolic move up.

 

Investors sentiment is at an all time high, in extreme bullish mode, setting up for a major stock market parabolic top that is often followed by violent reversal simply because everyone is now long the stock market, as such when selling commences there is no one on the opposite side of the trade, i.e. no one to buy.

 

On the short term 5-minute timeframe, NQ support for Wednesday is 5335.

-- Staying above 5335 on Wednesday implies NQ is still in a fast up-trending mode, next upside target is a new higher high.

-- breaking below 5335 is an i9ndication NQ is going into a pullback mode, the next support level is 5315.

 

NQ Guideline For Tuesday

The market was closed on Monday for the President's day holiday. But  on Friday last week the market continued to rally in a fast mode. The pattern should continue going forward.

Short term time frame (5-minute) support on Tuesday will be 5315.

-- As long as NQ stays above 5315 on Tuesday the current fast mode rally on the daily chart should continue.

-- Trading below 5315 is an indication NQ may be going into a pullback down mode.

 

NQ Guideline For Friday

Following a massive rally on Wednesday NQ simply traded sideways in a consolidation pattern on Thursday. With Friday's tendency to traded sideways, there is a high probability NQ may continue to consolidate its recent rally as long as it can stay above key support.

 

Key support for NQ on Friday will be 5290.

-- IF 5290 support remains intact on Friday look for NQ to either trade sideways or rally to another higher high.

-- Trading below 5290 could trigger sell programs to take NQ down to the next support level, 5260

NQ Guideline For Thursday

The stock market continued to melt up on Wednesday as major central banks continues their massive counterfeiting activities disguises as quantitative easing (QE).

 

The melt-up  should continue until all the three major currencies, the Euro, the USD and the Japanese Yen hyper-inflate, as the velocity of money and inflation numbers has now started to pick up.

Key inflection price level for NQ on Thursday will be 5395.

-- Trading above 5395 is an indication that NQ is still in a rally mode without consolidating.

-- Breaking below 5395 implies consolidation before resuming back up again.

NQ Guideline For Wednesday

After pulling back down to support in the morning Q resume the rally to another higher high on Tuesday. The pattern should continue as long as support continue to hold.

 

Key inflection price level for NQ on Wednesday will be 5265.

-- As long as NQ can stay above 5265 the rally is going to continue. Next upside target is a higher high above Tuesday swing high.

-- Trading below 5265 is an indication NQ is going to pullback down to support first before resuming the rally. Key support is 5250.

NQ Guideline For Tuesday

NQ continue to rally to another higher high on Monday after opening with a gap-up. On the daily chart all the major indices are in its blow-off phase, and once blow-off phase ends, reversal  is usually very sharp and fast.

 

Key inflection price level for NQ on Tuesday will be 5255.

-- NQ rally should continue in a fast mode, albeit, narrow range if NQ remains above 5255 on Tuesday.

-- Breaking below 5255 implies a consolidation, a pullback down to support zone, 5232, 5227, 5218, before rallying back up again.

NQ Guideline For Monday

NQ traded within a very narrow range on Friday. This type of trading pattern is going to continue going forward until there is a decent pullback in the market.

 

Inflection price level for NQ on Monday is 5225.

-- First support is 5217 and second support price level is 5207.

-- Trading above 5225 implies another higher high for NQ before profit-taking sets in, is above Friday swing high.

NQ Guideline For Friday

Another choppy narrow range up-trending rally for NQ on Thursday, with the close at key short-term intraday inflection price level, 5212.

Where NQ trades in the morning in relation to 5212 on Friday will determine whether or not NQ will first pullback down to support, 5195, before rallying up to another higher high or whether or not NQ will make a new higher high first then pullback down.

Again, key inflection price level will be 5212.

Foreign central banks continues to dump US treasuries in order to either defend their currencies from collapsing, or in order to finance their government's deficits.

NQ Guideline For Thursday

NQ remains  above breakout price level and making another higher high. The rally continues to struggle, slow and  choppy as insiders continues to download their shares ahead of sharp-selling activities soon to occur.

 

 On the short-tem intraday timeframe, support for NQ on Thursday will be about 5180.

-- Without much profit-taking selling at the end of the day on Wednesday NQ traders may decide to take profit in the morning on Thursday, with support at 5180. As long as 5180 is not clearly violated NQ should then rally to another new higher high.

-- Breaking below 5180 is an indication NQ is going back down to breakout level, 5164 area.

NQ Guideline For Wednesday

A sideways trading pattern for NQ on Tuesday. After opening with a gap-up and a trend up into another higher high in the morning, as usual, profit-taking and distribution selling activities pressured NQ downward. NQ traded slowly downward all day.

 

NQ opened above previous swing high from January 27th that has not been breached until Tuesday, thus making January 27th swing high, 5168, an important support level, as numerous algorithm trailing stop would sit just below 5168 price level.

 

-- As long as NQ remains above 5168 it should continue to make a higher high before pulling back down due to profit-taking and distribution activities.

-- Trading back below 5168 is an indication NQ is going back down into prior trading range, and likely to test 5145 support.

NQ Guideline For Tuesday

NQ traded sideways in a very narrow range on Monday. With most traders and investors fully invested in the market, until we get some kind of pullback down move, the choppy narrow range trading pattern is going to continue.

 

Support for NQ on Tuesday remains at 5145, bullish above bearish below it

.

NQ Guideline For Monday

With most traders and investors and funds fully invested in the stock market, there was not much movement in the stock market on Friday even with a better than expect job numbers.

With no more new buyers, unless the Fed can continue to buy the stock market, look for profit-taking selling activities to commence soon. Profit-taking selloff would then run-over trailing stop-losses, triggering more selling.

 

On the short term 5-minut timeframe, key support for NQ on Monday will be 5145.

-- Above 5145 NQ should continue to rally in a choppy fashion with the next upside target is a break above Friday swing high.

-- Some selling would come in below 5145. If so, the next support is at 5120-5125, then 5095

NQ Guideline For Friday

Ahead of the important non-farm payroll numbers on Friday, NQ simply traded sideways on Thursday, still trading above 5125 key support. Very clear bearish divergence on the Dow and S&P 500 daily chart remains valid.

 

5125 will again be key support price level for NQ on Friday. Non-farm payroll report could move NQ out of the current trading range.

-- Remaining above 5125 is an indication NQ may just continue to trade sideways.

-- Trading below 5125 is likely to trigger some selling. If so lower supports are 5095 and then 5083

 

Nonfarm payroll is a monthly report generated and reported by the U.S. Bureau of Labor Statistics intended to represent the total number of paid U.S. workers of any business.

NQ Guideline For Thursday

As widely expected, the Federal Open Market Committee — the central bank's policy making arm — kept its benchmark overnight lending rate target at a range of 0.5 percent to 0.75 percent. Fed buy programs managed to push the market back up to into the close.

NQ sold off hard, dropping down to support, in the morning after opening with a huge gap-up. Buy programs eventually managed to push NQ back up to the open, closing with a doji candlestick pattern on the daily chart.

 

NQ has now sold off in overnight trading, currently trading below Wednesday's day low. If buy programs did no0t show up before the open on Thursday NQ would be opening with a hugh gap-down. If so, the likely trend will be down for Thursday.

 

Key support for NQ on Thursday will be 5120, which is where NQ is currently trading after hours on Wednesday night.

-- If NQ can stay above 5120 on Thursday look for NQ to rally back up to test Wednesday swing high.

-- Failure to stay above 5120 is likely to trigger another round of selling. First support is, 5100, then its second support, Tuesday swing low, 5083. A sustained break below could trigger a cascade of selling.