NQ Guideline for Friday

The stock market was down on Thursday as the Trump administration triggered trade war adding to the Italian debt crisis.The stage is set for a global financial and economic meltdown.

 

Key price level for NQ on Friday remains at 6960, and at the close on Thursday 6960 was acting as support. As long as NQ remains above 6960 selling should remains under control.

 

However, should NQ breaks below 6960, the selloff could quickly take NQ down to the next lower support level 6860.

 

Trump trade was is very destructive to global economy but with the US administration under the control of the ultra nationalist, trade war should intensify going forward.

 

NQ Guideline For Thursday

Massive intervention by central banks in the bond market pushing yield down and buying the stock market has temporarily prevented the stock market meltdown, with all major indices positive a rally day.

 

The sovereign debt crisis is starting to get out of control again and the problem is very likely to start in Italy then spread worldwide, and it is very likely to start getting out of control in June 2018.

For NQ, the daily chart is still showing a bullish configuration, on its wave 5 up from the last test of its 200-dma support at the end of April NQ looks ready to break above its wave 3 swing high, and when it does, it is going to run-over many stop-losses congregating just above wave 3 swing high (7013) triggering large rally day.

 

On the 5-minute timeframe, key price leve for NQ going into Thursday will be 6960.

-- NQ is bullish above 6960, and any pullback is a buying opportunity.

-- If Italian crisis is going to again negatively affect the market, a break below 6980 is going to trigger some selling, next support is again 6860.

 

 

NQ Guideline For Wednesday

Global stock market sold off hard on Tuesday as fear of Italian debt default is starting to cause contraction of global liquidity which then is starting to trigger selling of assets such as stocks.

Central banks may be able to temporarily stabilize the global liquidity situation to avert global financial meltdown but deflationary forces will soon starts to overwhelm the authorities and then market meltdown would start to intensify.

 

For Wednesday NQ key price level will be 6960, now acting as resistance.

-- Trading below 6960 is going to continue to put NQ under selling pressure, the next key support is 6860.

-- Trading back above 6960 should reduce selling pressure

NQ Guideline for Tuesday

The US stock market was closed for the memorial day holiday on Monday but last Friday they were able to push NQ above 6960 key resistance level. However without buyers NQ simply traded sideways above 6960 in a very narrow range.

 

Key price level for Tuesday will be 6960 now acting a key support.

-- As long as NQ remains above 6960 it may just trade sideways or rally.

-- Breaking back below 6960 could trigger selling. If so, the next support is at 6860.

NQ Guideline For Friday

The stock market sold off hard as Trump cancelled his meeting with the North Korean. However, early Thursday morning selloff from resistance was aggressively bought as NQ rally back to close at resistance again.

6960 will continue to be key resistance level for Friday, Whether or not they are able to push NQ above resistance, it is difficult to forecast as deflationary forces continues to weight heavily on the stock market, buying continues to be met by heavy selling at resistance.

 

Key price level for NQ on Friday will be 6860 support and 6960 resistance.

NQ Guideline For Wednesday

NQ continued to trade sideways inside a trading range betwen6869 support and 6960 resistance for six consecutive days. It may require a major market-moving catalyst to knock the market out of its trading range.

For Wednesday NQ trading range is 6860 - 6960. NQ should continue to trade sideways as long it remains inside the range.

NQ Guideline For Tuesday

The market manipulators tried to rally the market on Tuesday by opening with a huge gap-up in order to generate a positive spin on failed trade talk with China, but the stock market refused to rally as deflationary forces continues to weigh heavy on the stock market.

 

NQ has been stuck between 6960 resistance and 6860 support for the last five trading days, and will continue to trade sideways inside the 6860-6969 range until it can clearly break out of the range.

NQ Guideline For Monday

On Friday NQ traded sideways above key support at 6860, prior swing high now acting as support. And as long as NQ remains above 6860, selling should remains under control, thus 6860 will be key price level on Monday.

 

If NQ can stay above 6860 we can expect another sideways price action or a rally. However, should NQ clearly break below 6869 selling could quickly tank NQ down to the next lower support price level ay 6760

NQ Guideline For Friday

Buy programs triggered right at the open pushed NQ up into 6960 resistance on Thursday morning, but failed to take it out which attracted short sellers who pushed NQ down to just above 6860 support before rallying up into the close. NQ then close near the open creating a doji type of day.

 

6960 would remain as key resistance for NQ on Friday and 6860 as key support.

-- As long as NQ remains inside the 6860 - 6960 price range NQ should continue to trade sideways.

-- A clear and sustained break out of the range could cause a trending move in the direction of the break

NQ Guideline For Thursday

A small rally in the stock market after a one day pullback. If the current upswing is still in progress, we should see another rally day on Thursday.

 

Key resistance price level for NQ on Thursday is 6960.

-- Failure to clearly break above 6960 is going to attract some selling, support is at 6860.

-- A clear break cold propel another rally day.

NQ Guideline For Wdenesday

After eight consecutive up days the market finally pullback down on Tuesday, a down day. NQ dropped down to critical support of 6860 before trading sideways, setting up a rally or another leg down on Wednesday

 

Key price level for Wednesday will be 6860.

-- If they can keep NQ above 6860 it has the potential to get the shorts to cover, resistance is at 6960.

-- A break below 6860 implies NQ may need to pullback down to lower level before attempting to rally again. If so, heavy selling could quickly tank NQ down to lower support at 6760.

 

The 10-year U.S. Treasury yield rose to its highest level since 2011, extending a selloff in the world’s biggest bond market and raising fresh questions about how high America’s borrowing costs will climb

NQ Guideline For Tuesday

The battle between the forces of deflation and the central banks buying continues, with rally in the morning that got sold in the afternoon, another sideways trading day on Monday.

 

The battle should continue, but for now the buy side is winning simply because the market is now solidly above key support price levels on the daily chart. And as long as the market continues to trade above their key support level, the algorithms will continue to be on buy mode.

 

For NQ, short term intraday support is at 6960.

-- As long as overnight buy programs is able to force NQ to open above 6960 on Tuesday NQ should continue to rally to higher high from buy programs and short-covering before selling comes back in.

-- Opening below 6960 could cause some selling, next support is 6865.

NQ Guideline For Monday

The stock market traded sideways in a narrow range on Friday, setting up for a larger trading range move on Monday, the direction depends on where it trades in relation its short term time frame key price level.

 

For NQ key price level on Monday will be 6940, and it will be a key support.

-- Trading and staying above 6940 is an indication NQ could trend upwards on Monday.

-- Breaking below 6940 could trigger some selling, support is at 6870

NQ Guideline For Wednesday

The stock market traded sideways on Monday and Tuesday as both the Dow and the S&P 500 stock indices are stuck between their 50-days moving average now acting as key resistance and their 200-day moving average now acting as key support.

 

The 50-dma and 200-dma continues to converge, indicating a trending breakout is imminent, the direction is not certain, but with deflationary pressure accelerating and central banks forced to tightened to avoid their own demise the breakout should be to the downside unless central bankers backs out of their tightening threats.

 

With Apple shares as the main target of current buy programs NQ is now above its 50-dma on the daily chart. Unless the Dow and the S&P 500 can break above their respective 50-dma, NQ breakout may be short-lived.

 

Short term key price level for NQ on Wednesday is 6800, bullish above, bearish below

 

Trump pulling out of Iran nuclear deal today could have a major impact on global market

Market Guideline For Thursday

As expected The Fed did not raise short term interest rate on Wednesday but is widely expected to raise rate again in June as the Fed continued its tightening in order to save the US dollar, but sacrificing the stock and bond market in the process.

 

Both the Dow and the S&P 500 came down to retest the crucial 200-day moving average on the daily chart. It looks vulnerable and may break at any time. A break should trigger massive selling that could get5 out of control.

 

Again, on the short term intraday timeframe, key support for NQ for Thursday is 6600.

-- A clear break should trigger an avalanche of selling, tanking NQ quickly down to 6400 support.

-- If NQ can stay above 6600 we could see another choppy sideways days or a rally.

 

Beware of stock market Crash

NQ Guideline for Wednesday

The Fed triggered massive buy programs on Tuesday ahead of their policy announcement on Wednesday.

Central planner engineered rallies continue to get sold as deflationary pressure continues to intensifies, a typical price actions at the end of a debt bubble. 

 

On Wednesday buy programs should continue to support the stock market as the Fed would not want to see a stock market selloff after their policy announcement.

 

On the short term intraday timeframe, support for NQ on Wednesday will be 6650, with the next resistance at 6770