NQ Guideline For Tuesday

On Monday NQ opened up above 5900 key support but failed to stay above 5900 as selling pushed NQ back below 5900, and then stayed below 5900 all day until the close, setting up for a bearish day for Tuesday.

 

NQ would need to rally back up above 5900 in order to keep sellers at bay and change the mode from bearish to bullish. If so, then NQ is likely to rally up to its first resistance at 5935.

 

Failure to break-back above 5900 is going to be bearish and likely to attract short sellers. If so, first support is at a double-bottom support at 5846.

NQ Guideline For Monday

With most traders out of the office on Friday the stock market simply traded sideways in a choppy and narrow trading range on Friday stuck between 5900 key support and 5935 key resistance.

For NQ on Monday, 5900 remains key support and 5935 as key resistance. NQ should break out of the range on Monday, and the direction of the break depends on where it trades in relation to 5935 resistance and 5900 support.
-- Trading above 5900 should keep selling under control, with first resistance at 5935 then 5955.
-- Breaking below 5900 is bearish and could trigger massive selling, first support below 5900 is a double-bottom support at 5845.

NQ Guideline For Thursday

On Thursday the Fed attempt to trigger a breakout rally day the day after their policy announcement, failed as huge gap-up opening was sold aggressively, triggered a bearish reversal engulfing candle on the daily chart.

 

Although they were able to rally NQ back up above key breakout price level at 5900, both NQ and S&P500 needs to break-back above reversal bar high to negate the current bearish technical pattern. Until then, heavy selling can come back without warning and tank the market hard.

 

Going forward and on Friday, key price level remains at 5900.

-- Selling remains under control as long as NQ remains above 5900. NQ either trade sideways on Friday or rally , with first resistance at 5935

-- Breaking back below 5900 on a closing basis, on the daily chart, is likely to attract heavy selling that can get out of control.

NQ Guidline For Thursday

The stock market continued to trade sideways again on Wednesday and the FOMC policy announcement did not change anything as there was nothing new.

Although NQ remains in breakout mode the lack of any new buyers is holding NQ back and not allowing the usual strong rally during a breakout mode. At the same time, sellers are held back from selling during a breakout mode thus keeping the market in a choppy narrow-range sideways pattern.

 

Key inflection price level for NQ remains at 5935 on Thursday and key support remains at 5900.

NQ Guideline For Wednesday

NQ traded sideways in a choppy narrow trading range on Tuesday ahead of the FOMC policy announcement on Wednesday afternoon.

 

Although no one expect the Fed to announce anything different on Wednesday the market may continue to chop around ahead of the policy announcement in the afternoon. Once the policy announcement has been released the Fed may trigger buy programs.

 

On the short term intraday timeframe, inflection price level on Wednesday for NQ is at 5935, and key support remains at 5900, a key breakout price level on the daily chart, and as long as 5900 support remains intact NQ remains in breakout mode.

NQ Guideline For Tuesday

NQ continued to trade sideways above 5900 breakout price level, keeping sellers at bay. But with most traders and investors already long the market there is not enough new buyers that could help push the market higher in a big way.

 

Going forward, 5900 continues to be keep price level to watch for market direction.

-- Trading above 5900 should continue to keep selling under control. As such, NQ either continues to trade sideways or rally.

-- Breaking back below 5900 is going to attract heavy selling pressure as breakout traders get forced to exit their longs and reverses short.

 

As today's 3-month T-Bill auction surprised the market with its highest yield since the fall of 2008, as investors continue to price concerns that the U.S. government will exhaust its borrowing authority around mid-October.

NQ Guideline For Friday

After breaking out above prior swing high, June swing high, on Wednesday, NQ consolidated for a second day in a row on Thursday, twice retesting 5900 key support price level twice.

 

As long as NQ remains above 5900, it is in breakout mode, and it is either going to continue consolidating above 5900 or rocket higher as short sellers cover their short and reverses long.

 

Going forward, key support for NQ is 5900.

-- Above 5900 NQ is in breakout mode, and could rocket at anytime, so Friday it is either going to continue to consolidate, or rally to another new high. NQ is bullish above 5900.

-- If NQ should trade back below 5900 in a sustained manner, it is likely to trigger selling, first downside target and support is 5850.

NQ Guideline For Thursday

NQ opened with a gap-up above its record high that was established in May, then traded sideways all day in a very narrow range, either consolidating as a setup for the next strong up-trending move, or setup for a big down move because there is really not many buyers left.

 

 Going forward, key price level will be 5900, now key support.

-- Staying above 5900 should keep selling under control as traders holding long position is simply going to go for a ride upward.

-- Falling back below 5900 is going to attract heavy selling , supports are 5880, then 5850.

NQ Guideline For Wednesday

On Tuesday, NQ opened with a gap-down and then after quickly dropping down to 5825 support, NQ spent the rest of the day in an up-trending mode.

 

It is getting clearer and clearer by the day that investors are choosing to keep their money in stocks as a hedge against collapsing dollar. As the US dollar tank day after day the stock market continues to make a higher high day after day, a clear trend towards dollar hyper-inflating.

 

Here below we can see that Zimbabwean stock markety index continued to rocket higher during their recent episode of hyperinflation of their currency.

 

And the same thing is now happening in Venezuela as their currency collapses their stock market continues to rocket higher.

On the short term time frame, key support for NQ on Wednesday will be 5855

-- As long as any NQ pullback down can stay above 5585 it is going to try to break above its recent record high at 5903.

-- However, a break back below 5855 is going to attract some selling, first support is again 5825.

 

Recently the IMF said in their recent report that the US dollar is up to 20% overvalued.

NQ Gudeline For Tuesday

After briefly breaking above 5850 resistance soon after the open on Monday NQ dropped back down to below 5850, then traded sideways the rest of the day with the close just above 5850 resistance.

Price action on Monday either is a setup for a strong breakout above 5850 resistance or a setup for a large pullback down move. The key to the direction of the next move in NQ will the inflection price level at 5850.

-- Trading above 5850 could keep major selling at bay, thus has the potential to trigger a fast rally to retest recent swing high at 5903.
-- Failure to stay above 5850 could attract some selling that could send NQ down to support at 5825 then if that does not hold, the next lower support is 5805

Chinese small-cap shares tumbled, leading the market lower, amid concerns about tougher regulations and more initial public offerings following a high-level conference over the weekend attended by President Xi Jinping.

NQ Guideline For Monday

After a brief pullback down to support soon after the open on Friday NQ rallied all day up to strong resistance 4850 by the end of the day.

 

On Monday 5850-5855 price zone is a strong resistance zone. A sustained break could trigger more algorithm buy but a failure to break above could attract some selling. If so, first support is 5820 then 5805.

 

With so many stop-loss sitting above 5855, the Fed buy programs may want to target those stop-loss, and the best way to do it will be to trigger a gap-up open on Monday, thus where NQ opens on Monday will provide an important clue.

NQ Guideline For Friday

As usual, after a large up trending day on Wednesday, NQ traded sideways in a narrow consolidation trading range on Thursday. It usually has to consolidate the large gain.

 

Unless NQ can clearly break up above Thursday high, look for another consolidation day on Friday trading between Thursday swing high and first support at 5770. Unless the market turns very bearish look for 5770 support to hold.

 

Thus, a break below 5770 could trigger selling to take NQ down to the next support zone between 5720 to 5735.

 

Janet Yellen concluded her 2 days testimony at the capital Hill on Thursday

NQ Guideline For Thursday

Ahead of the Fed Chairwoman Janet Yellen's testimony on Wednesday the stock market was engineered higher on Tuesday night, designed to cause a huge gap-up open to trigger a short-covering rally to make Janet Yellen looks good.

As it gets closer to the opening bell, it was clear the stock indices were going to open with a huge gap-up. The buy programs never stopped as it continued all day on Wednesday, but without many new buyers, the market simply rally in a very slow and choppy manner.

With NQ now above key moving averages on the daily chart, all algorithm are now on buy mode. Whether or not it continues to rally on Thursday or trade sideways to consolidate the huge Tuesday's rally, will depends on where it trades on Thursday.

Key inflection price level for NQ on Thursday will be 5765.
-- Trading above 5765 implies NQ is going to continue to rally, and the next strong resistance is not until 5850.
-- Breaking back below 5765 is an indication NQ may be going into a sideways consolidation mode, next support is 5735

NQ Guideline For Wednesday

NQ traded sideways between 5720 resistance and 5680 support all day on Tuesday and should continue to be key price levels for NQ again on Wednesday.

 

5700 - 5720 price zone is a strong resistance on the daily chart, and a key price zone where many algorithm will turns into buyers above but will remains as sellers below, thus a clear break will turn most algorithm into buyers. If so, the next resistance before strong selling is expected to come in is 5735 and then 5780.

 

But failure to clearly break above 5720 is going to attract selling with first support at 5670-5680 price zone, then a clear break implies a potential retest of recent low.

NQ Guideline For Tuesday

On Monday, the first test to break above 5680 resistance soon after the open failed as NQ dropped back down to support, a combination of prior day closing price and FT Pivot before bouncing and rallied back up to 5680 resistance.

 

The second attempt of the day to break above 5680 was a success and NQ then continue to rally up to the next resistance price level, 5700.

 

On Tuesday key resistance will be 5700-5720, and will be a strong resistance.

-- Failure to clearly break above 5720 is going to attract selling that could quickly send NQ down towards recent low.

-- A clear break above strong resistance is going to trigger some buying, next resistance is at 5780.

NQ Guideline For Monday

On Friday NQ opened with a gap-up remaining above recent swing low and then rallied up to test previous consolidation low support at 5680 area, now acting serves as resistance, and will be key resistance price level on Monday.

 

-- If NQ can break above 5680 resistance it is likely to rally up to the next resistance zone at 5720, which will be a strong resistance area.

-- Failure to break above 5680 resistance implies NQ may need to pull back down to support at 5630. A break below 5630 support should trigger some selling to retest the recent swing low at 5580.

 

With NQ daily chart still in sell mode, a break below 5580 support could trigger another rounds of liquidation selling, next support is 5450-5480. 

NQ Guideline For Friday

On the daily timeframe, NQ is in a strong down trending mode, currently trading below both the 20-DMA and the key 50-DMA, both around 5700 price level, now acting as strong resistance on any rallies.

 

On Thursday NQ dropped down to retest double bottom support within the first hour of trading before buy programs was able to rally NQ up to resistance. However, strong downtrend on the daily chart continued to drag NQ down again in the afternoon, closing just above the double-bottom of 5580.

 

5580 will be key support for NQ on Friday.

-- A clear and sustained break below 5580 is likely to run over trailing stop-losses, and triggering massive algorithm sell programs as the bulls exit their long position, and that could quickly tank NQ down to the next support zones at 5450-5480 area

-- Staying above 5580 is going to keep selling under control, if so NQ either trade sideways or rally.

 

Thirty-year yields surged as much as seven basis points Thursday to 2.92 percent, breaching both 50- and 200-day moving averages

NQ Guideline For Thursday

NQ dropped down to double-bottom support on Monday then bounced off double-bottom support on Wednesday, an up day for NQ on Wednesday

 

Key support for NQ on Thursday will be 5643.

-- If NQ remains above 5643 on Thursday it is likely to continue to rally to the next resistance at 5710. Failure to clearly break above 5710 could attract heavy selling that could send NQ back down to re-test its double bottom support.

-- Trading back below 5643 on Thursday is an indication sellers are back in control that could send NQ back down to re-test double bottom support.