NQ Guideline For Friday

Another large up-trending day for NQ on Thursday as buy programs continued for the third day in a row. NQ bumped into a double-top resistance on Thursday, setting up either a consolidation before a break above double-top, or a breakout without any consolidation.

 

With the stock market totally controlled by central banks we should not be surprised if they will push the stock market higher without a pause or consolidation. With most traders out of the office on Friday it would be very easy for the buyers to push the market higher.

Thus, key price level for NQ on Friday be the double-top resistance on the daily chart,  around 5992 area.

-- Failure to clearly break above 5992 could cause profit-taking pullback, first support is 5950.

-- Clearly breaking above 5992 could trigger some short covering rally.

NQ Guideline For Thursday

Another large up day in the stock market on Wednesday, and the rally should continue a bit longer.

 

To counter the negative impact of potential war with North Korea, the devastation inflicted by hurricane Harvey, the debt ceiling debate, the Treasury running out of money by the end of September that can result in government shutdown, the Fed has engineered massive rally to keep selling at bay.

 

The impact of the current market intervention by major central banks is only temporary as selling is going to continue and get more intense as we get into September and October timeframe.

 

Now that NQ has broken above its 20-dma resistance on the daily chart, 5870, and as long as NQ remains above 5870 we can expected another up-trending day on Thursday if central banks buy programs continues, or trade sideways if there is a pause.

 

It would take a very negative unexpected news for NQ to break back below 5870.

NQ Guideline For Wednesday

With the stock market ready to crash as it opened on Tuesday morning, major central banks were ready with massive buy programs that was triggered right at the open.

 

Massive buy programs continued on all day long pushing the stock market indices up in a very big way. NQ rallied above 90 points from the opening low.

 

Central banks may have won the battle on Tuesday but the bigger picture is not pretty. War with North Korea and the massive losses from Hurricane Harvey hitting the south and eastern United States will soon overwhelm central banks. Bear market is coming soon.

On the short tem intraday time frame, key price level for NQ will be 5880 resistance. If that breaks, then the next key resistance is 5900 again.

 

Failure to break above 5880 resistance is going to attract selling, could cause a stock market sell-off. However, central banks will remain active in the stock market for a while longer, thus the market may just trade sideways. 

NQ Guideline For Tuesday

The stock market traded sideways again on Monday, still trading between 50-dma support and the 20-dma resistance on the daily chart.

 

Dow futures open more than 100 points lower after North Korea fires missile over Japan. U.S. stock index futures pointed to a lower open on Tuesday following the news.

Key price levels to watch for on Tuesday on NQ will be 5825 support and 5870 résistance.

- A sustained break out of the range is likely to trigger a fast trending move out of the range, especially is the break is to the downside.

 

NQ has traded below support in after hours trading. Unless the Fed can engineered massive buy programs before the open on Tuesday the market is set to sell off hard.

 

NQ Guideline For Monday

With most traders out of the office on Friday and ahead of major central bankers weekend conference in Jackson Hole, Wyoming, the stock market traded simply sideways on Friday.

 

NQ has now been stuck between 20-DMA moving average on its daily chart acting as resistance and its 50-DMA moving average on its daily chart acting as support  for over two weeks.

 

On Monday key price level for NQ will be the 20-DMA resistance is at 5870 and 50-DMA support at 5820.

-- A sustained break out of the range will cause a fast trending move in the direction of the break.

-- A false breakout will lead to a fast reversal.

-- Staying inside the 5820-5870 price range implies more sideways action.

 

The current bias on the daily timeframe is BEARISH, and looks ready to break below 5820 price support, but we shall see where it trades in relation to the key price levels on Monday.

NQ Guideline For Friday

As expected, buy programs came in late morning to rescue the stock market from massive selling ahead of this weekend major central banks meeting in Jackson Hole.

 

Fed Chair person Janet Yellen is expected to make a speech on Friday, and it could move the market.. Selling pressure is beginning to get more intense as we approach the end of August as the topping process nears the end.

 

For Friday, look for any selling to be met with massive buying by central banks in order to keep the stock market elevated.

NQ Guideline For Thursday

The stock market simply traded sideways in a narrow range on Wednesday ahead of major central banks meeting in Jackson Hole this weekend.

 

Central banks managed to hold the stock market up on Thursday and should be able to keep it up on Friday as well, as it is very difficult to imagine central banks would let the market sell-off ahead of their annual meeting in Jackson Hole this weekend.

 

Selling pressure from President Trump trade war rhetoric is going to weight heavily on the stock market that is ready to tank at anytime, and Trump's destructive isolationist policy may be the catalyst that could trigger an avalanche of selling, the timing is impossible to predict.

 

On the short term timeframe, key inflection price level for NQ on Thursday will be 5840

-- Support is 5800

-- Resistance is 5880 

NQ Guideline For Wednesday

The recent stock market selloff was reversed on Monday and continued on Tuesday ahead of major central bankers annual meeting in Jackson Hole, Wyoming, this the weekend.

Central banks buy programs is likely to continue throughout the week in order to create a positive image for central banks who has now lost most of their credibility.

 

With that as a backdrop, on the short term timeframe, key support for NQ on Wednesday will be 5860.

-- As long as any pullback down move does not clearly violates 5860 support the rally should continue on Wednesday.

-- Break back below 5860 however, implies a pause in the current up move, NQ is likely going into a consolidation. If so support is a 5820.

NQ Guideline For Tuesday

After making a lower low below Friday's swing low early in the morning on Monday NQ reversed and rally back up, closing just below 5800 key price level.

 

On Tuesday, trading above 5800 could push NQ higher as short-covering and profit-taking activities sets in. If so the next resistance is at 5850.

 

Trading below 5800 is going to keep NQ under strong selling pressure, with key support at 5770.

 

Total solar eclipse kept many investors off the market on Monday

NQ Guideline For Monday

Following a strong stock market selloff on Thursday the market consolidated sideways on Friday as NQ and YM bounced off support at their respective 50-day moving average on the daily chart.

 

Going forward, with the S&P 500 clearly has broken below its 50-day moving average support on the daily chart, a clear break below the 50-DMA by both the YM and NQ should tanks the stock market hard, next support for NQ is at 5700.

 

With solar eclipse occurring on Monday which greatly affect the mood of the people don't be surprise if we get unexpected powerful stock market moves, either upward or downward

NQ Guideline For Friday

On Thursday, NQ opened below 5900 key support thus triggering another round of selling that initially tanked NQ down to 5860 support, which initially seems to hold, but attempted reversal failed as NQ continued to get dragged down lower by selling in the cash market.

 

At the end of the day, NQ eventually dropped down to 5800 which is another key support. No doubt the Fed proxy buyers will try to defend 5800 support on Friday. If so we could see the typical consolidation type of price action on Friday, however, a clear violation would immediately tank NQ down to the next support at 5700.

NQ Guideline For Thursday

After successfully breaking above 5925 resistance on Wednesday triggering strong short-covering rally, it was met with massive selling that overwhelmed buyers, sending NQ back down below 5925 then support.

 

NQ is currently back inside the 5900-5925 trading range, which will be the key price levels on Thursday.

-- A brebreak back above 5925 could trigger another round of buying.

-- A break below 5900 is likely to attract another round of intense selling, with the next lower support at 5860, then 5800.

NQ Guideline For Wednesday

On Tuesday, NQ was engineered to opened with a gap-up above 5900 key inflection price level, designed to trigger a short-covering, but instead, was sold immediately, declining back down to 5900 price level which was then serving as support. 

 

5900 would remain as a support level, as 5925 as resistance on Wednesday. A clear breakout of the 5900-5925 trading range could trigger a fast move away from the range, up or down.

NQ Guideline For Tuesday

After opening with a huge gap-up on Monday followed by a small rally breaking above 5900 resistance, NQ then traded sideways in a very narrow range, as it was not able to break above 5925 resistance, which will be Tuesday's key resistance.

 

Above 5925 the next resistance 5940. With many sellers waiting at 5940-4950 resistance zone,  the Fed would need to trigger massive buy programs if they are going to overwhelm the sellers and rally the stock market higher.

 

Key support on Tuesday will be 5900. Breaking below could trigger some selling.

NQ Guideline For Monday

The 50-DMA support was aggressively defended on Friday. Buy programs managed to slowly rallied NQ up to 5845 resistance, closing just below it, making 5845 key price level, a resistance level for Monday.

 

Thus trading above 5845 may trigger buying and short-covering, the next resistance zone is 5870-5880 area, then at 5900.

 

Trading below 5845 could attract sell programs, but NQ would need to break back below 5800 to cause massive selling. If so the next lower support is at 5680

 

Sharp sell-off on Thursday resulted in a sharp spike in volatility which had recently touched historically low levels around 8.5. While this may not the beginning of the next cyclical upswing in volatility just yet, it should serve as a good reminder of what will happen when volatility does return

 

NQ Guideline For Friday

On Thursday both the S&P 500 futures and Nasdaq futures, the NQ opened below their respective 20-DMA which was still acting as support at the end of trading day on Wednesday, thus triggered heavy algorithm selling, tanking the stock market very hard, and setting up a very bearish close for Friday.

 

Both the S&P 500 and NQ has breached their respective key 50-DMA support on Thursday, and if they do not break-back above it on Friday is likely to trigger another round of selling.

 

Thus key inflection price level for NQ on Friday will be 5800 and 2445 for ES.

-- Trading below5800 for NQ will be bearish with lower supports at 5680 then 5650.

-- Trading back above 5800 should keep sellers under control, resistances are 5855 thn5870

 

NQ Guideline For Thursday

Current price action in the financial and stock market is indicating that the beginning of the bear market is getting very close. The momentum of the current bull market is weakening by the day.

 

Although market manipulator so far are still able to reverse every attempted selloff, the normally bearish month from August to October could starts to overwhelm the buyers.

 

Both the S&P 500 and Nasdaq NQ have briefly breach their respective 20-DMA support on Wednesday although they manages to close them above. A re-break below their 20-DMA could trigger some heavy algorithm selling.

 

On the short term intraday timeframe, key price level to watch for in NQ on Thursday will be 5925 resistance and it was where NQ closed for the day on Wednesday.

-- Above 5925 on Thursday is going to attract some buying wih the next rsistance at 5950, a price level where sellers may come back again
-- Below 5925 implies a consolidation day of a large down day.


 

NQ Guideline For Wednesday

On Tuesday, the stock market rallied sharply in the morning. Both the Dow and the S&P 500 made a new record high, but NQ failed to make a new higher high. Selling came with a vengeance in the afternoon, tanking the stock market hard.

 

Recent rallies has been sold aggressively, a clear sign of a distribution topping price action, insiders downloading their positions each time the market was engineered higher. These price action is going to continue until they are ready to tank the stock market.

 

On the short term timeframe, key inflection price level for NQ on Wednesday will be at 5920, support will be at 5900 then if that does hold the next lower support is at 5870.

 

Here is S&P 500 monthly chart from 1995 to July 2017, with a 12-MMA. Although the bull market momentum on the monthly chart is still very healthy, the bull market is clearly way overstretched to the upside, and it is in its 5th wave up from the 2009 bear market low, thus vulnerable to sharp and sudden heavy selling.

NQ Guideline For Tuesday

NQ slowly rallied in a choppy narrow range price action on Monday, finally broken above 5920 resistance.

 

After successfully testing the break, it then continued its slow choppy rally into the close, setting up a bullish day for Tuesday, that is, as long as it can stay above 5920, now key support for Tuesday trading.

 

Staying above 5920 should key the rally going, but breaking back below 5920 implies a retest of 5900, and if that breaks, a retest of 5870 support.

 

Dow continues to set a new record high day after day, perhaps setting up an October crash scenario?

NQ Guideline For Monday

NQ traded sideways in a very choppy narrow range on Friday as most traders and investors are on their summer holidays.

 

NQ has been stuck mostly between 5870 support and 5920 resistance, unable to breakout out as buyers continues to battle sellers. As such, a sustained breakout of the range could cause a large trending move out of the range.

 

A successful sustained break to the downside below 5870 could cause a large liquidation drop as buyers bail out of their position. A successful break to the upside above 5920 could cause some short-covering rally, but with most already long the market, the rally is not going to be as powerful as a decline on a break to the downside.

 

For Monday, inflection price level remains at 5900, with resistance at 5920 and support at 5870

 

NQ Guideline For Friday

On Thursday, another gap-up open was again immediately sold, the fourth day in a row, as insiders continues to upload their stocks before they let the market collapses while the public continues to buy. NQ continues to keep breaking below 5900 key support price level as they are clearly not able to hold NQ above 5900. The price action is clearly a distribution activities.

 

The Dow again made another record high but with only two stocks dragging the index up, Boeing and Apple, clearly deteriorating market breath, a prelude to a plunge.

On the short term and the longer term timeframe, 5900 remains key price level. They would have to intervene more aggressively is they are going to key NQ bovver 5900, and avoid an avalanche of sell orders that can get out of control. 

NQ Guideline For Thursday

The stock market topping pattern continues to get clearer by the day, and market breath continues to worsen. Dow continues to make new record high with fewer and fewer  stock participating.

 

NQ gap-up open designed to trigger rallies continues to get aggressively sold, a clear sign that a sustained decline in the stock market is coming closer and closer by the day.

 

For NQ, Wednesday was the third day in a row that NQ gap-up opening above key support of 5900 continues to get sold. Massive buy programs continues to buy the declines, and it is another sign that bear market is beginning to assert itself.

 

On the short-term intraday timeframe, key inflection price level remains at 5900, support is at 5855 and resistance at 5935

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NQ Guideline for Wednesday

On Tuesday, NQ opened with a gap-up above 5900 key price level, designed to trigger a rally, but instead it was quickly sold.

NQ immediately dropped down below 5900, but was aggressively supported, never allowed to trend lower as it could cause liquidation selling that can easily get out of control.

NQ then traded sideways in a very narrow range all day on Tuesday with a close below 5900, setting up a bearish mode for Wednesday unless of course it can rally back up above 5900.

However, NQ would need to break below 5870 to trigger another round of selling. Remaining above 5870 implies more sideways choppy action.

On the longer term timeframe, the stock market is setup for a big drop, likely sometime this fall, September-October timeframe, although it could be earlier or later. But September and October are generally bearish months.