NQ Guideline for Thursday

With the Dow and S&P 500 still trading above their respective 200-day moving average, NQ traded sideways.

 

A break below their key technical support price level, the 200-dma should trigger massive selling algorithm that would overwhelmed the Fed buying programs that is designed to keep the indices above their 200-dma.

NQ next potential support is 6300

NQ Guideline For Wednesday

The stock market sold off hard again on Tuesday after a one day rally off the 200-dma on the daily chart. Both the Dow and the S&P 500 retested their 200-dma again on Tuesday, a very bearish sign.

 

Although Nasdaq NQ still trades above its 200-dma, it could get dragged down by the broader market if in fact the Dow and the S&P 500 would break bellow their respective 200-dma.

 

Key price level for NQ going into Wednesday will be Tuesday low.

-- A break could crash the market, next potential support is 6300. However, if the Dow and the S&P 500 break below their 200-dma, NQ could easily slice through its 200-dma.

NQ Guideline For Tuesday

With both the Dow and the S&P 500 dropping down to their respective 200-day moving average on Friday, it was expected that the PPT would aggressively intervene to push the stock market up on Monday.

 

And so they did, helped by profit-taking, the stock market has a big bounce on Monday, but not until Europe stock market has closed, The US stocks were selling off hard in the morning even with an engineered huge gap-up open.

 

The stock market may rally further on Tuesday or trade sideways on Tuesday. Although heavy selling is not very likely on Tuesday, if heavy selling would comes it would have a very bearish implication.

 

Resistance for NQ on Tuesday are 6820 and then 6850

 

On Monday China launched gold-backed Petro Yuan.

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NQ Guideline for Monday

After three large consecutive down days, NQ may try to consolidate or bounce on Monday as traders may starts to take some profit.

 

However, on the daily timeframe, NQ support is not until 6300 thus a failure to bounce on Monday implies NQ is going to go down to its 6300 support before bouncing.

 

On the short term 5-minute time frame, key inflection price level for NQ on Monday is 6620.

-- Failure to break above 6620 is an indication selling is intense, and NQ is vulnerable to sharp sell-off.

-- Breaking back above 6620 could attract more profit-taking buying, next resistance is 6675.

 

Trump trade war rhetoric should continue to be bearish for the stock market.

NQ Guideline For Friday

The stock market sold off hard on Thursday after  Trump announce another tariff against China. Trump insanity is going to  cause a real crash, and it may already too late to reverse investors psychology.

NQ low on Thursday is at double-bottom with March 02 swing low, and it may bounce from it on Friday, btu it is a risky bet. With most investors long the stock market, the decline could get very ugle very quickly as investors get their force margin liquidation. 

 

Key price level for NQ is at double-bottom support, 6675

NQ Guideline For Thursday

Now that the Fed meeting on policy decision for march is out of the way the market can now move onto its next phase.

 

On Wednesday the Fed triggered numerous buy programs to push the stock market upward, but selling kept coming in, with NQ closing just above its important and crucial support at 6850.

 

A break below 6850 has the potential to  trigger massive selling, next potential support is at 6650. Failure to break may trigger some profit-taking rally ahead of the weekend, if so the next resistance is at 6950 then 7000.

 

With China ready to launch their gold-back petro Yuan, schedule for march 26th, Trump is expected to ratchet up his trade war rhetoric with China on Thursday, a bearish signal.

NQ Guideline For Wednesday

A narrow-range sideways price action in the stock market on Tuesday as traders and investors wait for the FOMC decision on Wednesday.

A quarter point rise  in the Fed funds rate is baked into the stock market, but many may be waiting for the language before making their decision.

 

The stock market technical pattern is currently bearish and could be ready for the next leg down. However, for Wednesday, the Fed is going to announce their policy decision in the afternoon, anything is possible, it is a highly manipulated market, and the Fed could trigger a big buy programs to make it looks like everything is good. 

 

For NQ, key short term price level for Wednesday is 6920 as resistance and 6820 as support.

-- A rally above 6920 could take NQ back up to 7050 resistance.

-- A sell-off below 6820 could tank NQ down to 200 to 300 points lower. Strong support is not until 6220

NQ Guideline For Tuesday

Spooked by President Trump global trade war rhetoric, an already massive stock market bubble may be starting to get unhinge. Both the Dow and the S&P 500 stock index did not may a higher high. Instead both seems to confirm a lower high retest of the record high recorded in January, an Elliott wave 2 pullback.

If so, the next down leg will be very devastating, an Elliott wave 3 down, or wave C, but either one tends to be fast and large. 

 

As such, with most investors aggressively bought the recent February pullback, the lower the stock market goes, the more intense selling would become as investors position get liquidated on margin selling.

 

For Tuesday, NQ support is now at 6850 and resistance at 6950, a 100-points trading range.

-- A break below support could lead to massive selling as traders position gets liquidated.

-- Staying above 6850 may keep selling under control, but NQ has to break back above 6850 to lower the risk of heavy selling.

NQ Guideline for Monday

On Friday, NQ continued to trade sideways in a narrow trading range just above key support price level 7030.

 

Going forward, as long as NQ remains above 7030, it either continue to trade sideways or rally. However, breaking back below 7030 is likely to trigger heavy selling. A break below 7030 is likely if Trump continues to talk about his global trade war.

NQ Guideline For Friday

On Thursday, NQ continued to trade sideways in a choppy narrow-range trading pattern, above critical support 7030, not able to rally as trump trade war dampens enthusiasm.

 

As the trade war accelerates, with the world retaliating against the US, the stock market may in fact stars to turn back down soon when selling starts to overwhelm the central banks stock buying binge. Trade war is bad for the world economy. Nobody wins in trade war.

NQ Guideline For Thursday

With both the Dow and the S&P 500 still trading below their January swing high, dragging down the overall market, NQ was not able to rally, but instead traded sideways just above its key support price level, now at 7030, a price level at breakout day swing low just above where breakout trades trailing stop-loss congregate.

 

Thus key price level for NQ going into Thursday trading session will be 7030.

-- A clear break below could trigger heavy algorithms selling. If so, lower supports are 6900 then 6800 

-- Remaining above 6730 support could results in either a sideways price action or a rally day.

 

Global trade war between the United states and the world dragged Boeing stocks down on Wednesday

NQ Guideline for Wednesday

Of the three major equity indices, the Dow, the S&P 500 and Nasdaq 100 (NQ), it is only NQ that has broken above pervious swing high before the 10% meltdown, the January high.

 

As such, unless and until both the Dow and the S&P breaks above their respective swing high, NQ breakout could become a false breakout, resulting in a fast reversal back down as breakout traders get liquidated when NQ breaks back down below its breakout swing high.

 

A large selloff for NQ on Tuesday but previous swing high 7050, a key breakout price level, now support, stropped NQ decline on Tuesday.

 

Going forward, NQ either rally aggressively from 7050 support or breakdown below it. A break back down below it is gong to trigger massive liquidation decline, with lower supports at 6900 and then 6800

 

Key support for NQ is 7050, breakout price level

 

Trading False Breakout

 

NQ Guideline For Tuesday (June Contract)

A narrow-range up day for NQ on Monday but both the Dow and the S&P 500 had a down day on Monday.

 

With NQ still in breakout mode above 7050 on June futures contract, any selling should remains under control. NQ needs to break back below 7050 to attract massive selling interest. 

NQ Guideline for Monday

With Trump trade war against the entire world accelerating, major world central banks buy programs went into overdrive last week just to create a positive sentiment out of bad situations.

Trade war is bad for the global economy, and sooner or later reality will prevail, but the timing is difficult o predict as it is now no longer an economic issue. The stage is now set for a global economic collapse, the only question is how long can central banks keep the charade going before the whole financial systems collapses.

 

On the short-term timeframe, the stock markets is in rally mode, especially for NQ as Friday was a breakout day for NQ.

-- As long as it remains above 7030, on the March contract, short-sellers will cover their position on any decline 

 

NQ remains in buy mode above 7030, but will turn into sell mode below 7030

NQ Guideline For Friday

With both the Dow and the S&P 500 still trading below their key 50-day moving average, now acting as strong resistance, NQ should continue to rally in a choppy fashion as selling pressure from the larger stock continue to dragged down the NQ stocks.

 

With Friday's tendency for the market to trade in a choppy fashion, it is likely that the stock market is going to trade sideways on Friday unless some unexpected market moving news surprise the market to trigger a trending move one way or the other.

 

Short term intraday support for NQ on Friday will be 6930.

-- As long as NQ can remains above 6930 we either get a sideways choppy pattern above 6930 or a rally.

-- Trading back below 6930 implies a potential move down to the lower support level at 6870.

NQ Guidelien for Thursday (March Contract)

With the Fed buy programs targeting a few popular  nasdaq stocks, NQ rallied right from the open on Wednesday after opening with a huge gap down following Trump top economic advisor resignation announcement. However, both the S&P 500 and the Dow remains below their key 50-day moving average. 

Key price level for NQ going into Thursday will be 6870.

-- If NQ can stay above 6870 it should continue to rally with the next resistance is n9ot until January swing high at 7030 for NQ based on March futures contract, 

-- Trading back below 6870 will be bearish.

A clear 5-wave rally for S&P 500 (SPY) for the 2009 bear market low

 

NQ Guideline For Wednesday

A relentless buy programs pushed the stock market up, especially NQ, on Tuesday. But most of the gains on Tuesday has now been erased in after hours trading on Tuesday evening after the resignation of Trump top economic advisor was announced.

With both the Dow and the S&P 500 still trading below their critical 50-DMA on the daily chart, things can get ugly really quickly on Wednesday.

 

Although the Fed would be ready with massive buy programs when the stock market opens for trading on Wednesday, the avalanche of selling could easily overwhelm their buy programs.

 

Key support for NQ on Wednesday remains at 6700.

NQ Guideline For Tuesday

A huge rally for NQ on Monday as the Fed buying algorithm continues to target a few major NQ stocks such as Netflix, Microsoft, Apple just to keep the sentiment on the bullish side. But the breath of the current rally is getting really bad and very vulnerable to sudden heavy selling.

 

However, only a very modest rally for the Dow and the S&P 500 as they remains below their respective key resistance at their 50-day moving average on the daily chart.

 

Until the Dow and the S&P 500 can break back above their 50-DMA, it will remains very vulnerable to heavy selling.

 

On the short term time frame, NQ key price level for trading on Tuesday will be 6860.

-- If NQ can stay above 6860 the rally should continue as sellers should remains under control.

-- Trading back below 6860 could attract heavy selling but support is at 6785.

Market Guideline For monday

NQ dropped down to is key support at 6700 on Friday and then rallied impressively to close at the high of the day.

 

However, with both the Dow and the S&P 500 still trading below their respective daily chart 50-day moving average resistance, both had a small gain for the day on Friday.

 

Selling pressure should remains intense for the Dow and the S&P 500 stock as long as they remains below their respective 50-DMA on the daily timeframe, which then can drag NQ down. Should NQ breaks below its daily 50-DMA key support, selling could get very intense.

 

Below 6700, the next strong support for NQ is 6200 price level.

 

Trump trade war should continue to depress global equity market.

NQ Guideline For Friday

The stock market sold off hard after President said that the US will implement tariff on Steel and aluminum imports next week. This is the second set of tariff with many more to come.

This is very negative for the world economy as a whole. First it was the currency war, now trade war, then world war. The stage is set for an escalation of trade war as other countries would now starts to impose their own tariff as well.

 

NQ dropped down to its critical 20 and 50 day moving average before bouncing into the close. The Dow and the S&P however both broke below their critical 50-day moving average, setting potential massive algorithm selling as trailing stop-losses get hit.

 

Whether or not the market will sell-off on Friday it is very difficult to predict because the Fed is certain to intervene aggressively buying the stock to keep it up. In addition, traders may be closing their short ahead of the weekend. In doing so, providing support for the stock market.

 

Come next week, as long as the Dow and the S&P 500 remains below their 50-DMA, selling could get out of control.

 

NQ critical support is now 6700 price level