NQ Guideline For Friday

On Thursday NQ opened with a gap-down, then after closing the gap in the morning NQ simply traded sideways in a narrow range into the close. NQ is now sandwiched between 5920 support and 5960 resistance.

 

The closing price was just above key support of 5920,

-- For Friday, as long as NQ can remain above 5920 it is likely to rally, and the first resistance is at 5960.

-- Trading back below 5920 is bearish, and is going to attract sellers, first support is at 5900. If that does not hold then the next support is at 5840.

NQ Guideline For Thursday

On Wednesday NQ opened with a gap-up above key inflection price level, setting up a bullish day. After dropping down to support, NQ then rallied to above the morning swing high before settling back down a bit on profit-taking activities.

 

The closing price on Tuesday was just above support, 5935, which will be key inflection price level for NQ on Thursday.

-- Trading above 5935 will keep NQ in a bullish mode, resistance is again at 5960.

-- Trading back below 5935 implies a potential further drop down to 5900-5910 support zone.

-- Below 5900, NQ will be in a very bearish mode, lower support is at 5835

 

Trump tax reform plan talk was an excuse for the buy programs on Wednesday

  

NQ Guideline For Wednesday

NQ traded sideways on Tuesday between 5870 support and 5915 resistance , then closing in the middle of the trading range.

 

For Wednesday, if NQ is not able to rally clearly above 5915 resistance, selling could come back into the market, with first support at 5870, then 5835.

 

Should 5835 not hold the decline, more selling could come in and tank the market hard, lower support is at 5750.

 

A break-back above 5915 could trigger some short-covering rally, next resistance is 5960.

NQ Guideline For Tuesday

A bearish day in the stock market on Monday with NQ Mostly AAPL) dragging the whole market down.

 

NQ opened with a gap-down below key inflection price level on Monday, setting a stage for a bearish day.

 

Buyers tried several time to rally the  market back up again but intense selling continued too overwhelm the buyers until late day profit-taking activities finally managed to pushed the stock market up about 40 points from the low.

 

NQ has now broken below its wedge trend-line support, and broken below its 50-DMA support, indicating that the ending diagonal /wedge has been completed and the stage is set for heavy and sustained selling, although it may have to wait a bit longer for the S&P 500 and the Dow to do the same.

 

On Monday, at its low of the day, NQ rally from a test of its 100-DMA on the daily chart, and as long as it hold, we could see a one or two days sideways action or rally before attempting to crash through it.

 

A clear break below its 100-MA on the daily chart, without first consolidating, could tank NQ quickly down to its next major support, which is its 200-DMA, now sitting at 5550.

 

Key inflection price level for NQ on Tuesday will be 5860.

-- Above 5860 selling should be under control until 5900 resistance.

-- Trading back below 5860 is bearish, next support is Monday's swing low, then 5835, which is key support on Tuesday.

 

Another sign that the economy is in trouble, today GM announced that it is going to Cut Entire Shift at SUV Factory, Laments “Moderating” Sales, Layoffs not Temporary

NQ Guideline For Monday

On Friday, NQ opened below Thursday's close, which was instantly bought, quickly closing the gap, then traded sideways in a narrow range the rest of the day.

 

NQ closed just below key resistance,  which is at 5945 on Monday.

-- If NQ can rally back above 5945, it should then rally further up to the next resistance level, which is at 5970.

-- Failure to break back above 5945 could trigger another round of selling. If so, the first support is at 5920, then a critical support at 5900.

 

According to Robert Shiller, Professor of Economics, The U.S. stock market looks like it did before most of the previous 13 bear markets

NQ Guideline For Friday

Another sideways trading pattern for NQ on Thursday as early morning selloff continues to be bought. Until NQ can break down below 5900 key support the choppy sideways trading pattern is going to continue, with selling continuing to be bought.

 

On the daily timeframe, NQ is competing a 5-wave ending diagonal trading pattern, with lower trend line support now at 5900. Until NQ can decisively break below 5900, every decline is going to be bought.

 

Key price level to watch on Friday will be 5970.

-- Breaking back above 5970 could trigger some shorts to cover. Whether or not that would lead to sharp rally is difficult to say because insiders continue to sell every rally in order to lightened up their long positions ahead of the inevitable large sharp decline.

-- Clearly breaking below 5900 has the potential to trigger an avalanche of selling that could overwhelm buy programs.

 

NQ Guideline For Thursday

The Fed kept short term interest rate the same on Wednesday but promised to begin winding down their asset beginning in October, which effectively sucks liquidity out of the financial system. If true, that is very bearish for the market going forward.

 

NQ was not able to stay above key inflection price level of 5990 on Wednesday thus triggered several rounds of sell programs, but as expected, the Fed was ready with their buy programs to push the market back up again.

 

The Fed is likely to be active with their buy programs for at least several day to prevent any market selloff.

 

Key inflection price level for NQ on Thursday will be 5985.

-- Seller should be under control above 5985.

-- Selling is going to come back if NQ could not break back above 5985.

NQ Guideline For Wednesday

NQ traded sideways in a very narrow range on Tuesday as investors wait for the FOMC policy decision announcement on Wednesday.

 

Whatever the Fed decides on Wednesday the Fed is certain to trigger buy programs to keep the market up. Whether or not they will be successful depends on the amount of capital they are prepared to spend on Wednesday compares to how much selling activities occurring after the announcement

Key inflection price level for Wednesday remains at 5990, Bullish above, bearish below

NQ Guideline For Tuesday

On Monday, ahead of the upcoming bear market, market insiders continued to dump technology growth stock in Nasdaq and buying large cap Dow and S&P 500 stocks. As such, NQ continued to struggle while the Dow and the S&P 500 continues to make record high, a classic topping pattern.

 

This type of price action should continue a while longer as insiders continue to swap their small cap growth stocks for large cap stocks, simply because small cap growth stocks will decline more than large cap stocks during a bear market.

 

For Tuesday, a short term intraday key inflection price level for NQ remains at 5990.

-- First support is at 5970.

-- First resistance is at 6020

 

NQ remains inside a choppy trading zone. 

NQ Guideline For Monday

NQ traded sideways in a narrow range on Friday after a massive buy program triggered soon after the open failed to push NQ up to a higher high. NQ continues to struggle below September 01 swing high.

 

Since its June pullback low, NQ is building a bearish ending wedge pattern on the daily timeframe, Elliott Wave refers to as Ending Diagonal. Ending Diagonal usually has a 5-wave structure before completion. It is now in its 4th wave, and near completion, and it would take another one to two weeks before the ending pattern completes.

 

Completion of the pattern implies the end of the current uptrend and the beginning of a downtrend, .

 

On the short term intraday timeframe, key inflection price level for NQ for Monday will be 5990.

-- Trading above 5990 indicates a bullish bias, with the next resistance at 6020, a double-top resistance from September 01 high.

-- Trading back below 5990 is bearish, next support is at 5940

 

Economic Cycle Research Institute Weekly LEI is pointing downward, indicating potential recession coming soon.

NQ Guideline For Friday

A narrow-range sideways consolidation type of trading action for NQ on Thursday. After opening with a gap-down it then rallied back up to test resistance before trending back down again, and closing at the low of the day, setting up a bearish day on Friday.

 

On the short-term 5-minute timeframe, NQ closed in oversold territory, and thus could pullback up before running back down, if pullback up move does not violate resistance.

 

If NQ is not able to break back above resistance, now at 5990 for NQ, then selling could resume, next downside support is 5940.

NQ Guideline For Thursday

On Wednesday NQ traded sideways below double-top resistance at 6013, the high of the day on September 01, 2017. NQ has been trading below that price level for many days as the Fed buy programs continues to support distribution activities by insiders.

 

With so many stop-loss congregating just above 6013 they are going to try to cause a breakout above 6013, and as long as profit-taking selling activities does not overwhelm the short-covering, the rally should continue after the break.

 

However, heavy profit-taking selling could push the market back down below 6013, triggering long-covering.

 

The double-top resistance at 6013 will be key price level on Thursday.

-- A clear and sustained break would force some shorts to cover, triggering a short-covering rally.

-- A false break above 6013 is going to trigger heavy selling, and first support is at 5990 then key support is at 5950.

NQ Guideline For Wednesday

NQ traded sideways below double-top resistance on Tuesday still unable to break out above 6000 key resistance. However, as long as NQ can stay above key support of 5950 any selling should remains under control.

 

For Wednesday support is 5950 and resistance is 6000.

-- A sustained break out of the range could trigger a fast trending move in the direction of the break.

-- A false breakout is going to trigger a fast reversal.

--  A failure to break out of the range implies more sideways consolidation price action.

 

The Trump administration continues to be obsessed with North Korea in order to divert attention from its domestic problems.

NQ Guideline For Tuesday

Massive overnight buying by the Fed ahead of the 9-11 anniversary on Monday helped creat5ed a huge opening gap in the equity market on Monday.

 

Buy programs continued all day on Monday to keep the stock market up. NQ is now just trading below its 6000 whole number resistance and also near double-top resistance zone on the daily chart.

 

With so many stop-losses congregating just above 6000 price level for NQ many algorithms are simply waiting for a break above 6000 to exit their long position. Thus until NQ breaks above 6000, selling might just wait for the break.

 

On the short-term intraday time frame, key support on Tuesday will be 5950 and resistance at 6000.

NQ Guideline For Monday

NQ broke below key inflection price level of 5950 on Friday soon after the open, then spent the rest of the day trending down to just above 5900 supports where it closed for the day.

 

With Monday as the anniversary of the nine eleven attack on the WTC, the Fed is already busy at work with the buy program, overnight NQ has traded already traded above key inflection price level of 5950.

 

5950 will again be Mondays key inflection price level

-- If NQ can stay above 5950 on Monday selling should remains under control. Concerns about the negative impact of the 9-11 anniversary n Monday should keep the Fed buy programs active. It does not mean that the stock market should stay up. Resistances are 5980 then 6000.

-- Supports below 5950 are 5900 then 5880 as previous swing high.

NQ Guideline For Friday (September Contract)

After testing 5950 support in the morning on Thursday NQ then rallied up to 5980 minor resistance before dropping back down to 5950 support again.

 

On Thursday 5950 is again key support, with first resistance at 5980.

-- Staying inside the 5959-5980 trading range implies more consolidation sideways action on Friday.

-- A sustained breakout of the trading range is going to trigger a fast move out of the range, higher resistance is at 6000, lower support are 5900 then 5880.

 

A powerful category 4 to 5 hurricane Irma is expected to hit Florida this weekend.

NQ Guideline For Thursday

On Wednesday morning NQ retraced most of Tuesday afternoon rally before finding support and then rally in a choppy manner. Bothe Tuesday afternoon rally and Wednesday's afternoon rally looks choppy and corrective, thus is vulnerable to another sharp selling if it is not able to stay above key support.

 

On Wednesday key support and key inflection price level will be 5950.

-- Breaking back below 5950 has the potential to trigger selling that can overwhelm the buyers.

-- If NQ can stay above 5950 selling should be under control until it rally to resistance at 6000

 

A very powerful hurricane Irma continues to head towards the east coast of the United States, and could inflict very damage and destruction, and that is a big negative for the market.

NQ Guideline For Wednesday

The current bull market in equities continues to lose momentum. On Tuesday the stock market sold off hard in the morning, down to key support before rallying in the afternoon erasing some of the loses.

 

Both the S&P 500 and the Dow futures dropped down to their respective 50-dma key support before bouncing but the bounce was small and weak, an indication that the 50-dma support is now vulnerable. A clear break is likely to cause a large down day.

 

Key intraday inflection price level for NQ on Wednesday will be 5920.

-- Resistance is 5975

-- Support is 5890

 

There are several factors that is very negative for the stock market going forward, and one of them is Hurricane Irma, forecasted to hit Florida and rated at least a category 5., and could bring massive devastation to the region.

NQ Guideline For Tueday

NQ traded briefly above double-top resistance of about 5996 on Friday but was quickly sold  pushing NQ back down below 5996.

 

5996-6000 will be key price level for NQ on Tuesday.

-- Failure to break-back above those price level is going to attract some heavy selling. If so, the next strong support will be 5900, although there are some potential supports at 5975 and then 5940.

-- Intervention by the Fed could push NQ back up above 5996, and could cause a large short-covering rally.

 

Tensions between the United States and North Korea is going to be a heavy drag on the stock market. On Sunday North Korea exploded hydrogen bomb which is certain to infuriate President Trump.