NQ Guideline For Thursday

Topping price actions continued on Wednesday as smart money insiders continued to download their long positions into the hands of dumb unsuspecting and ultra bullish public investors ahead of the beginning of a bear market.

 

Most of the selling was in high-flying and extremely bubbled Nasdaq stocks. Whether or not we have a follow-through selling on Thursday is hard to say as insiders always coming in to buy to push the market higher before dumping their stock again, a typical of a topping distribution price action.

 

Key support for NQ on Thursday will be Wednesday swing low of 6284

-- As long as NQ remains above 6284, selling should remains under control until it rally back up to 6380-6390 resistance zone.

-- Trading back below Wednesday low could ignite another round of selling, next support is about 6200, a trendline support on the daily chart.

 

Bitcoin continued to rally, hitting over $11,000 before pulling back on profit-taking actions.

NQ Guideline For Wednesday

NQ continued to trade sideways in a choppy narrow range trading actions on Tuesday simply waiting for some trigger to start the selling.

 

The bull market is losing momentum, and with deteriorating breath, along with numerous bearish divergences, but no one wants to sell aggressively as insiders are just happy to continue selling into a rally.

 

As such, the slow choppy rally should continue for a bit longer.

NQ Guideline For Tuesday

On Monday, with most traders still not back from their Thanksgiving holidays the stock market simply traded sideways in a very narrow range. Whether or not we can get any range expansion on Tuesday, we just have to wait and see.

 

For NQ key support on Tuesday will be 6400.

-- As long as NQ remains above 6400, it should either trade sideways again, or rally to another new high before distribution selling, insiders selling, comes back in.

-- Trading below 6400 could trigger some selling activities, if so the next support price level is 6375. If that happens to get violated to the downside, then then next support level is at 6345

Happy Thanksgiving

The stock market will be closed on Thursday November 23, 2017, for Thanksgiving, and will reopen on Friday November 24th. 2017

NQ Guideline For Tuesday

A choppy sideways narrow range trading action for NQ on Monday, trading just above key support of 6300.

 

As long as NQ can stay above 6300 selling should remains subdued. However, should 6300 breaks, an avalanche of sell orders could trigger a quick drop down to the next major support at about 6240 where buyers may come back in the cause a bounce.

 

The current stock market breath is deteriorating fast, and market selloff can come at anytime now. A classic Dow Theory bearish divergence scenario, where Dow Industrial new high is not confirmed by Dow Transport,  a bearish scenario that has been developing for a while, and it just need a trigger or no trigger to get the selling going.

 

Dow Theory

NQ Guideline For Friday

The stock market was aggressively engineered higher ahead of the congressional vote on Trump tax reform agenda on Thursday, with NQ closing at the high of the day.

Unless they aggressively engineered the market again on Friday look for the typical choppy sideways narrow range price action on Friday. Intraday support for Friday will be 6320-6325

 

 

NQ Guideline For Thursday

Topping price action continued in the stock market on Wednesday. There was a general weakness in the market with all the major indices trading in a bearish mode.

 

For NQ on Thursday key resistance price level to break in order to get back to bullish mode is 6280.

-- Remaining below 6280 is going to keep NQ on a bearish mode and selling could come back in. If so key support is at 6226 then if that breaks, lower support is at 6200.

-- Trading back above 6280 will put NQ back in the bullish mode, and could trigger some shorts to cover to lock in profit ahead of the weekend. The next resistance is 6305

 

NQ Guideline For Wednesday

NQ traded sideways below key inflection price level, 6305, all day on Tuesday. Failure to break back above 6305 could attract selling, with first support at Tuesday swing low, then 6250

 

With General Electric continue sell-off, it could eventually trigger more selling that could tank the stock market. General Electric sold off hard again on Tuesday

As we approaches the end of November and early December potential cycle top time period look for more choppy price action in the stock market.

 

Key inflection price level for NQ on Wednesday will again be 6305.

NQ Guideline For Tuesday

NQ opened with a gap-down below inflection price level. Although buy programs was able to push NQ back up above 6305 inflection price level it failed to trigger any buying and Nq simply traded sideways in a choppy narrow range trading action.

The momentum of the current uptrend is starting to slow down, and NQ may be ready to drop back down before pushing back up again.

Key support for Tuesday trading will be 6305.
-- Breaking back below 6305 could trigger some selling with the next immediate support at 6285 then 6275.
-- They may be able to rally NQ back up to test the recent high if NQ can remain above 6305.

General Electric GE shares price continued to tank on Monday. GE share price is a leading indicator for the stock market.

 

NQ Guideline For Monday

A usual for Friday, NQ traded sideways in a vary narrow range, closing slightly above key inflection price level, 6305 for Monday.

 

The setup for Monday morning is for a rally, as long as NQ remains above 6305 by the opening bell. If so, the next upside target is 6360, but first resistance is at 6345. It needs a lot of short-covering and large buy programs from the Fed to get through 6346 resistance and then to 6160 target before possibly pulling back down.

 

However, should NQ trade back down by the opening bell on Monday it could trigger algorithm selling tha6t could push NQ back down to lower support level, first support at 6275.

 

The so-called "Trump Rally" was fuelled by the strengthening Chinese currency, the Yuan against the US dollar. It has now started to weakened against the US dollar, setting up a fast stock market decline for the US market.

 

NQ Guideline For Friday

A big down move in the equity market in the morning on Thursday, and it took until the afternoon before central banks were able to push the stock market back up to close near where it closed on Wednesday.

 

With the current stock market rally occurring with negative breath it is not going to be long before the stock market reverses in a big way. Thursday was a classic example of market selling off without any major news. This type of market action is going to get more frequent as we nears the market top and nearing the turning point.

 

Inflection price level for NQ on Friday will be 6310.

-- Trading above 6310 could cause some shorts that have not covered their short position on Thursday to starts covering. If so, we could see NQ rallying to above Wednesday high before pulling back down.

-- Trading back below 6310 could attract selling, with first lower support at 6275.

NQ Guideline For Thursday

With buy programs now targeting a few selective technology Nasdaq stocks such as Apple, NQ continues to make a higher high while the Dow traded sideways in a vary narrow range, a classic topping pattern that is highly manipulated.

 

But this type of market manipulation must come to an end. Crypto currencies, led by bitcoin, is likely going to prevent central banks from unlimited paper money creation for market manipulation. Until then the market is going to continue to get pumped upward.

 

NQ intraday support for Thursday is 6325.

NQ Guideline For Wednesday

With the Fed the only main buyers of stocks, unless they are willing to commit massive capital to keep the stock market elevated insiders selling could starts to overwhelm buying and push the market back down.

 

On Tuesday NQ traded sideways all day in a very narrow range after making a brief higher high in early trading.

 

Short term key support for NQ on Wednesday will be 6305.

-- Breaking below 6305 implies a likely a larger drop to the next support level which now sits at 6275

--  Trading above 6305 is an indication another higher high is likely before selling come back in.

NQ Guideline For Tuesday

NQ traded sideways above prior day (Friday) swing high in a choppy narrow range trading pattern. The Fed is going to continue to buy the market, especially buying AAPL shares to keep the market elevated in order to manipulate the market sentiment. 

 

Buying programs should continue to push the stock market up, however, Tuesday could be a pullback down day or a sideways trading pattern type of day before trending back up again.

 

Key support for NQ on Tuesday will be 6285.

-- As long as any pullback down move in NQ can stay above 6285, NQ is either going to either trade sideways or trend back up again.

-- Break back below 6285 implies a larger drop, next support is 6270.

NQ Guidelien For Monday

After opening with a gap-up above resistance, then pulling back down to broken resistance turned support, NQ rallied to new high on Friday without the usual profit-taking pullback down move at the end of the day.

 

With the Fed buy programs now targeting just a few stocks including Apple stock (AAPL) look for NQ to continue to get pulled up for while longer before the collapse, expected to be the end of November to early December time window..

 

On the short term intraday frame key support for NQ on Monday is 6280.

-- Staying above  is an indication NQ is going to make another higher high before pulling back down to support, and then trade sideways..

-- Dropping back down below 6280 implies NQ is going into a larger drop, with next support at 6245 before bouncing back up again.

 

We are near the end of a large distribution topping pattern

 

 

 

NQ Guideline For Friday

NQ opened below resistance on Thursday then traded down to support in the morning before buyers were able to push it back up to 6245 resistance where it closed on Thursday.

 

6245 is again key resistance price level for NQ on Friday.

-- If NQ can break back above 6245 on Friday NQ should break to new higher high before sellers come in to sell.

-- Staying below 6245 implies choppy sideways price action, especially for Friday, with support at 6200 area. .

 

With Trump just appointed a new Fed Chairman Jay Powell to replace Janet Yellin on Thursday there is really no incentive for Janet Yellin to push the market any higher for Trump. As such, anything can happen, and the stock market can unexpectedly collapse without the Fed constant buy programs.

NQ Guideline For Thursday

A reversal down day for NQ on Wednesday, with a gap-up open above prior day high that was sold, with a close near the day low, with a bearish momentum at the close.

NQ would need to trade back above 6245 to get back into bullish mode. 6245 is Thursday key inflection price level for NQ.
-- Remaining below 6245 by the open on Thursday is going to attract selling, with the first target of a break below Wednesday swing low. With trailing stop-loss for the long position, NQ would need to break below 6205 to trigger a liquidation decline as trailing stop-loss becomes sellers.
-- Trading back above 6245 on Thursday implies the pullback down move has ended and that NQ is going to resume its rally, with the first upside target of a break above Wednesday swing high.

NQ is currently in a very overbought condition on the daily chart and a substantial pullback down move is warranted.

The FOMC kept interest rate unchanged on Wednesday