NQ Gudideline For Friday

With Friday notorious for trading in a choppy sideway fashion, unless NQ can breakout above resistance or breakdown below support in a sustainable manner, look for NQ to false break and then reverse to test the opposite support/resistance.

Trading range for NQ on Friday will be 5425-5447, with 5425 as support and 5447 as resistance, and inflection price zone at 5440.

Both the S&P 500 and the Dow are currently still trading below their respective swing high while NW on Thursday broke above its recent high, making a new higher-high.

NQ Guideline For Thursday

A very choppy rally for NQ on Wednesday as buy programs continued to struggle to keep the stock market elevated.

 

The stock market is clearly in a topping pattern with the technology growth stocks in (Nasdaq) leading the rally and large cap Dow stock lagging the rally. At market top investors are bullish on growth stocks and dump large cap stock.

 

The Dow and S&P has been in a pullback down mode for almost a month now but NQ was only in a pullback mode for five days, now ready to blast up to another higher high while the Dow and the S&P 500 lagging behind, still in a-b-c pullback wave pattern since making a new high at the beginning of March, and seems likely not able make a new higher high, particularly the Dow.

 

On the short term 5-minute timeframe, key resistance now for NQ is 5440.

-- A sustained break above 5440 has the potential to ignite a brief short-covering rally as stops get hit above its recent high.

-- A false breakout above recent high could attract aggressive sellers. with support at 5425 then 5400.

 

Chart of S&P 500 showing a clear a-b-c pullback-down wave pattern.

 

NQ Guideline For Wednesday

On Tuesday after consolidating sideways just below key resistance for about one and a half hours, aggressive buy programs by the Fed was unleashed, designed to break above 5385 resistance in order to trigger short-covering, and it lasted all day into the close, resulting in a large up day.  

 

Going into Wednesday, key support for NQ is now 5400.

-- As long as NQ can remains above 5400, now support, short-covering should continue. However, following a large up day on Tuesday it is very likely NQ may have to consolidated the gain on Wednesday, unless of course another massive buy program is planned for Wednesday.

-- Trading back below 5400 is an indication NQ needs to retest previous key resistance now support at 5385.

NQ Guideline For Tuesday

The Fed buyers were ready with buy programs on Monday as the market opened with a huge gap-down, threatening to unleash massive selling algorithm that could cause a stock market crash.

 

This type of choppy price action where a big down day would be followed by a big up day is going to continue until the indices break below their 50-day moving average on the daily chart, which for NQ currently stands at 5262.

 

Current key resistance for NQ is now its 20DMA on the daily chart, which is currently ay 5385 area.

-- Failure to clearly break back above 5385 is going to attract sellers. If so, the next support is at 5370. A sustained break below 5370 is going to attract more selling, and the next support is 5310. 

-- Breaking above 5385 is likely to trigger some buying and short-covering, with the next upside target is a break above recent high, 5440

 

Gold is currently trading just below its 200-DMA. A break above 200-dma could cause massive short-covering rally.

NQ Guideline For Monday

As usual, NQ traded sideways on Friday, following the usual Friday script. NQ is now stuck between 5400 resistance and 5330 support, with 5370 as price inflection level.

 

On Monday as long as NQ remains below 5400, NQ will be vulnerable to selling pressure. Even so, NQ would needs to trade below 5330 to trigger overwhelming number of selling algorithms that can tank NQ down to the next support at 5250, but 5300 is a potential support level for a bounce.

 

Remaining above 5330 would keep NQ inside a choppy trading range, 5330 - 5400.

NQ Guideline For Friday

Friday tends to be choppy, often with a sideways consolidation pattern, staying inside a trading range. However, following 2-days of sideways consolidation pattern there is a possibility this Friday may be a wide range day, particularly if NQ can break and stay below Wednesday's swing low.

 

Key resistance is 4375 and key support is 5330.

-- A sustained break out of the 5330-5375 trading range is going to cause a big move in the direction of the break.

-- A sustained break above 5375 could cause a swift short-covering rally to 5400 resistance, and

-- A sustained break below 5300 would cause a liquidation selling move down to 5250 support.

-- A false-breakout of the 5330-5375 trading range will cause a fast reversal and targeting a move to the opposite range support or resistance.

-- Remaining inside the range is likely to keep NQ choppy, with sideways trading pattern.

NQ Guideline For Thursday

As expected, following an extreme down-day on Tuesday NQ consolidated sideways all day on Wednesday. Once consolidation has ended, after one or two days of consolidation, the next down-leg should resume, as such, it has to resume on Thursday or Friday. However, failure to do so implies that was just a one massive sell-off day, hence the current uptrend should resume.

 

Key resistance price level on Thursday will be 5375.

-- A sustained break above 5375 could cause the shorts to cover. If so, the next resistance is at 5400.

-- Failure to break-back above 5375 is going to attract sellers, first support is at 5345. However, if selling gets very intense the next major support is not until 5250, the 50-DMA on the daily chart.

NQ Guidelien For Wednesday

The stock market euphoric rally finally stalled on Tuesday with huge decline in all the major indices, the Dow, the S&P 500, the Nasdaq.

 

With almost every analyst currently extremely bullish, the market may have topped. Whether or not the current bull market can make another higher high before the bear market can begin, only time will tell.

 

It seem very likely that the top is in, and the long awaited bear market may have just started the beginning on its first leg down (wave 1), which usually retraces about 25%.

 

Usually following a massive selloff like on Tuesday the market consolidate and trades sideways before the next big decline commences. However, if selling is really intense, another large down day following a big down day is also highly likely.

 

Short-term intraday price inflection level for NQ will be 5360. Watch the opening price action and also price action soon after the open, because the Fed may intervene aggressively to push the stock market up.

-- If NQ can trade back above 5360, look for selling to remain under control, resistance is 5400.

-- Remaining below 4360 put heaving selling pressure on the market, next support is 5310 followed by 4245 then 5150.

 

The bear market may have just begun.

NQ Guideline For Tuesday

NQ retested 5400-5405 support twice on Monday, one soon after the opening bell and the next one was in late afternoon. In both cases, NQ bounced very sharply from support, thus keeping short-sellers at bay, and keeping NQ in neutral to bullish mode.

 

Both the Dow and the S&P 500 are currently sitting just above their respective 20-DMA. Should their respective 20-DMA breaks, selling could get intense, and likely to drag down NQ with them.

 

5400 would continue to be a critical support for NQ on Tuesday.

-- As long as 5400 support is not clearly violated, NQ should remain in a neutral to bullish mode as short sellers and sellers remain inactive.

-- A clear and sustained break below 5400 is likely to trigger some selling, next support is 5480 followed by 5465.

NQ Guideline For Monday

Friday was a narrow range day as NQ traded sideways all day. The up-trending momentum on the daily chart is really starting to stall, selling pressure is just starting to overwhelm the buying pressure. The stock market may be ready to top, then to be followed by a down-trending market.

 

Current support for NQ remains at 5400. As long as 5400 support is not violated NQ should continue to either trade sideways above 5400 or continue to rally.

 

A sustained break below 5400 is going to trigger some selling. If so the next support is at 5380 then 5365.

NQ Guideline For Friday

After making a new higher high on March 01, NQ consolidated for the next nine consecutive days, then finally broke above March 01 high on Wednesday after the FOMC decision was released.

 

On Thursday we saw a re-test of the breakout price level (5400-5404) retested the level twice and held. Going forward, as long as NQ can remains above 5400-5404 support, the rally should continue.

 

A break back below 5400 is an indication NQ is going to pullback down to its first support at 20-day moving average on the daily chart. Should that breaks, we are going to see a much larger drop. 

NQ Guideline For Thursday

As expected, the Fed raise the short term interest rate on Wednesday, and then triggered massive buy programs in order to rally the stock market thus created a positive response to their policy action.

But the impact of the Fed buy programs is likely to be short-live as US$ tanked after the FOMC decision was released, which can then begin to trigger an exodus capital away from US dollar assets including the US stocks.

 

A cascade of selling in the stock market could start to overwhelm the Fed buy programs and trigger the beginning of a big stock market collapse that could happen very soon.

 

Raising interest rate into a weakening economy plus the debt ceiling crisis could trigger a massive selloff in the stock market as international capital flee the US stock market and going into precious metals and commodities.

 

A typical first down leg (wave 1) of a stock market decline is usually about 25% of the value, that implies a 5,000 points decline in the Dow, a 1,350 point decline the Nasdaq 100 and a 600 points decline in the S&P 500.

 

On the short term intraday timeframe, key price level for NQ on Thursday will be 5400.

-- Some shorts may have to cover if NQ remains above 5400 in the morning on Thursday.

-- Should NQ opens below 5400 in the morning on Thursday, and remains below 5400 in the morning, selling may come in to sell the market. If so the first support is at 5380 then 5365.

NQ Guideline For Wednesday

NQ traded sideways again remaining inside the current trading range. It is expected to remain inside the range until the FOMC announces their policy decision on Wednesday afternoon.

 

Another potential market moving news is the result of the Dutch election. A victory for the Euro-Exit group would speed up the  timeframe for the eventual collapse of the European Union and the Euro currency.

 

Trading range support for NQ on Wednesday will be 5345, and resistance is 5400

-- Inflection price level for NQ is 5480, and first support is 5365

 

NQ Guideline For Tuesday

As expected NQ rallied in a slow choppy action on Monday as the Fed buying algorithm continued to push the market up. But with everyone now already long the market the up trending move is slow and choppy. NQ closed just below the last swing high from March 01, 2017

Key price level for Tuesday will be 5400 which is just below prior spike swing high.

-- If NQ can clearly break above and stay above 5400 on Tuesday it could trigger a short-covering rally, which is exactly what the buyers would hope to accomplish.

-- Should NQ break above 5400 and then reverses back down, look for some sharp selling, but it could be brief, first support is at 5380 then 5370.

-- If NQ remains below 5400 on Tuesday look for choppy sideways price action with support at 5370 - 5380 and resistance at 5400

 

Bond continue to be sold. The 10-year Treasury yield rose 5 points to 2.625%, breaking above December 2016 high. At this pace, the yield will soon double from the record low of 1.36% in July last year.

NQ Guideline For Monday

Again on Friday, NQ traded sideways inside a consolidation range but remained in the upper section of the trading range 5335-5400.

With the FOMC very likely to raise interest rate at their meeting this week, look for the Fed buy programs to continue to push the stock market up ahead of the meeting just to ensure that traders and investors would not sell the market ahead of the release of their policy announcement on Wednesday.

 

Key inflection price level for NQ on Monday will be 5375.

-- If NQ can remains above 5375 it is likely to try to retest the previous high 5400, probably try to make a new higher high before profit-taking selling sets in.

-- Trading below 5375 implies continuing consolidation. If so the next support level is again 5360.

NQ Guideline For Friday

NQ continued to trade sideways above key support price level 5332 on Thursday. Afternoon selling tanked NQ down to just above 5332 support where it was aggressively bought, and NQ rallied back above 5360 key price balance level.

 

5360 is again key price balance level for Friday. With employment report to be released before the market opens, anything is possible by the time the market opens.

-- Staying above 5360 is an indication NQ is going to rally up, first upside target is 5385, but there is resistance at 5375.

-- Trading back below 5360 implies a retest of 5332 support. Should 5332 get clearly broken to the downside, selling could get intense, next support is 5317, then 5307.

 

Debt Ceiling deadline is fast approaching (March 16) but there is already calls for raising of the debt ceiling

NQ Guideline For Thursday

NQ remains stuck inside a trading range for the last five trading sessions, unable to rally as there is simply no more buyers left to push the market up except the buy programs engineered by the market manipulator.

The debt ceiling coming into effect in on the 16th of march weigh heavily on the market but no one really wants to sell simply because the buy programs is always ready to come in to squeeze the short sellers. As such, without any substantial pullback down move the market is going to remain choppy and narrow range.

Key support remains at 5332 for NQ. NQ is going to remain choppy above 5332.

NQ Guideline For Wednesday

NQ continued to trade sideways on Tuesday, the fourth day in a row, but staying above key support level at 5332. Going forward as long as NQ remains above 5332 NQ either continues to trade sideways or rally back up again.

 

A clear break below 5332 could run over trailing stop losses that is likely to take NQ down to the next support level, 5315 then 5307.

 

The federal debt limit, which was suspended by Congress and the president in November 2015, is set to be reinstated on March 16, 2017. At that point, the government’s outstanding debt would immediately bump up against the new debt limit of about $20.1 trillion, and the Treasury Department would be forced to take “extraordinary measures” to ensure the smooth functioning of the federal government’s finances.

NQ Gudeline For Tuesday

Monday was the third pullback day for NQ on the daily chart.so a resumption of the current uptrend should occur on Tuesday as failure to do so could attract some selling.

 

Key support for NQ on Tuesday will be 5355.

-- Staying above 5355 should keep sellers at bay, and rally should continue, and the next upside target is a higher high

-- Trading back below 5355 is going to attract some selling, next support is 5332.

NQ Guideline For Monday

Friday trading action followed the normal trading pattern we would normally see on Friday. it was a typical choppy sideways action. 

 

Friday low found support at the 50-moving average, a price level that stalled and reversed early morning selling as NQ eventually break-back above key inflection price level at 5355 and then continues its choppy narrow range up-trending move.

 

On the 60-minute timeframe chart, however, it is showing a bear flag. In a free a free market the next move will be down, but we do not currently have any free market as all markets are extremely manipulated, so anything is possible.

 

Key inflection price level for NQ on Monday will be 5365.

-- Trading above 5365 is an indication NQ is likely going to rally to another higher high.

-- Trading below 5365 could attract some selling with the next support at 5355, then 5345.

-- Key support is a gap-close price level at 5332

The looming debt ceiling deadline is March 15, 2017, and if the debt ceiling is not raised, there could be violent selloff in the equity market and other markets as well.

On February 12, 2014, the Temporary Debt Limit Extension Act was passed, suspending the debt ceiling until March 15, 2015. At that time, the Treasury Department took extraordinary measures. On October 30, 2015 the debt ceiling was again suspended to March 15, 2017.

NQ Guideline For Friday

On Thursday NQ opened below key inflection price level, 5390, then traded all the way down to key support which was previous consolidation high 5355-5360, a key resistance price level that was eventually broken on Wednesday, and got retested on Thursday.

A reaction to the retest of breakout price level 5355-5360 is key to determining  the direction of the next leg.

-- A break below, or an opening below 5355 on Friday is an indication NQ is going down to the next support, which is, the gap-close price level at 5332 for NQ. If that support does not hold, the next support will be the consolidation low at 5307.

-- Trading above 5355 implies a potential rally up to break back above Wednesday's swing high.

NQ Guideline For Thursday

On Wednesday it must have been massive central banks overnight buying binge that causes the equity market to open with a huge gap up.

 

Under normal circumstances, in a free market, Wednesday's opening gap would clearly be an exhaustion gap at after a sustained parabolic rally. But the equity market and most markets for that matter are grossly manipulated by central banks with the money they counterfeit at record amount, disguised as quantitative easing or simply called QE.

 

There is a real possibility that the current fiat money system is nearing the end, and with central banks counterfeiting money at insane rate, currency collapse which is commonly referred to as hyperinflation, is now a very likely possibility because central banks has to continue to increase the amount just to keep the system going.

 

Hyperinflation has definitely hit the real estate market in the US, UK, Canada, Australia, China, Hongkong, just to name a few countries, as home prices continue to melt up at an accelerated rate.

 

Whether or not the current parabolic move up in the equity market the beginning of a hyperinflation phase, we just have to wait, as there is not way to know in advance. If it is the beginning of hyperinflation, then the equity market should continue to rally at an accelerated pace. However, if is not the beginning of hyperinflation, then the current gap-up is an exhaustion gap, if so, it should reverse back down in not too distant future.

In order for the current rally to keep going, any pullback down should not break back down below Wednesday swing low, and definitely not below gap-close, that is, not below Tuesday closing price. 

 

Staying above Tuesday closing price implies the current up-trending move should continue, and the pace could accelerate.

 

On the very short term 5-minute timeframe, inflection price level on Thursday will be 5390.

-- Staying above 5390 implies NQ is going to make another higher high before pullback back down due to profit-taking by short term traders.

-- Trading below 5390 could forced traders to exit their long position. If so, key support is at 5955-5960.

 

Here is Venezuela stock market index as their currency hyperinflates

 

Here is Israel Stock Index