NQ Guideline For Wednesday

On Tuesday NQ opened with a gap-up, but inside prior day trading range, setting up a sideways consolidation pattern.

 

After closing the opening gap in the morning NQ rallied and then spent the rest of the day trading sideways.

 

NQ is now sandwiched between its daily chart now acting as resistance, the 20-dma and support at its 50-dma on the daily chart, (7200). 

 

Key price level on Tuesday will be 7200 support and 7320 resistance.

-- NQ would need to break above 7320 resistance to attract more short-covering.

-- Below 7320 NQ will remain vulnerable to heavy selling.

-- However, NQ would need to break below 7200 to trigger heavy algos selling. If so the next strong support is not until 7000.

 

On Tuesday Apple earning helps prevents another day of heavy selling

NQ Guideline For Tuesday

On Monday NQ open below 7300 key support price level, its 20-day moving average on the daily chart, triggering algos selling that tanked NQ down to the next key support price level on the daily chart, the 50-day moving average at 7200 price zone for NQ.

 

On Tuesday 7300 will be key line in the sand for NQ

-- Trading above 7200 should keep selling at bay. If so NQ may rally or just trade sideways, with major resistance at 7300.

-- Trading below 7200 has the potential to trigger another rounds of algos selling, and the next potential support is at 7000 price zone

NQ Guideline For Monday

A very large down day for Nasdaq on Friday, with NQ dropping down over 165 points from prior day close.

 

NQ low was a slight violation of its 20-dma strong support on the daily chart, but managed to close just above its 20-dma, setting up either a sharp selloff on Monday if NQ trades below its 20-dma on the daily chart, which was about 7300 as of Friday's close. If so the next crucial support is 7200.

 

Or, on Monday, if NQ can stay above 7300, we can expect either a sideways consolidation pattern or a rally on Monday.

 

Twitter was a drag on the market on Friday, with its stock price dropping over 20%.afdter earnings.

NQ Guideline For Friday

NQ traded sideways in a narrow range on Thursday as 7390 continued to provide strong support despite being dragged down by massive selling in Facebook stocks. NQ was squeezed between 7390 support and 7435 resistance all day on Thursday.

 

For Friday NQ support is now 7400 and resistance is 7435.

-- A breakout of the 7400-7435 range could cause a sharp movement out of the range.

-- A failed breakout will cause a sharp and fast reversal

NQ Guideline for Thursday

NQ rallied most of the day on Wednesday. And after making a new high above priuor day high NQ quickly tanked due to a disappointing Facebook earning reports.

NQ has now broken below it key 200-sma (7435) on the five minute chart. Unless the Fed buy programs can push NQ back up above 200-sma by the open NQ is set to open with a gap-down.

 

If so supports are 7390 as key support. If that does not hold then NQ is going down to lower support level, 7317 and 7290

 

Should it breaks 7290 then it is likely to trigger a cascade of selling as many stop-losses still resides below 7290.

NQ Guidline For Wednesday

An exhaustion gap-reversal type of day for NQ on Tuesday. However, the reversal did not start immediately as usual until all short-covering from stop-losses that congregated above the last swing high was completed.

 

Once short-covering activities has ended NQ then dropped nicely down, stalled briefly at the retest of prior day high before dropping down further to lower support levels at 7390 before the end of day profit-taking bounce, setting up a potential retest of lower support if 7390 is violated, lower supports are 7317 then key and crucial 7290 support.

 

For Thursday 7390 support needs to hold for NQ to trade sideways or rally, as a break would triggers selling algos that can quickly drops NQ down to 7317 or 7290

 

NQ Guideline for Tuesday

After opening below prior day low, then dropping down to support in the morning NQ reversed and rallied up through several layers of resistances and close at the high of the day, with a huge spike after goggle earning reports.

NQ is current trading higher after hours, setting up a potential opening with a gap-up. If so, key support will be Monday swing high, and it should not break if NQ is going to trend higher.

 

A break-back below Monday swing high implies a movement back down to value area and supports, first support is 7390, then 7375.

NQ Guideline For Monday

On Friday, NQ traded sideways for the second day in a row, trading above support at 7360, but it now looks ready for a drop down below 7360 support come Monday, down to  lower support levels such as 7335, 7317 or down to 7290.

 

7290 is really an important support level as stop-losses congregates just below 7290, as it is a breakout day low, thus a sustained break below 7290 could trigger longer term trading algos. If so, the next major support is round 72`15.

 

NQ need to stay above 7360 to keep selling under control.

 

NQ Guideline For Friday

NQ traded sideways between 7400 resistance and 7360 support all day on Thursday, setting up a breakout day or a continual action inside the range.

 

As for Friday, key price levels are 7360 support and 7400 resistance.

-- A successful breakout of the range is likely to trigger a fast move in the direction of the break.

-- A failed breakout will result in fast reversal

NQ Guideline for Thursday

After a large up day on Tuesday NQ traded sideways in a narrow consolidation pattern, setting up a rally day, or a pullback down day on Thursday

 

Key inflection price level on Thursday will be 7400

-- Trading below 7400is bearish, and likely trigger algorithm sell programs over-running the buyers, taking NQ down to supports, first is 7350, then 7335..

-- NQ may attempt to rally if it stays above 7400 as sellers are likely to be less active above 7400.

NQ Guideline For Wednesday

With the Fed Chairman scheduled to testify before congress on Tuesday they are certainly not going to let bad earnings from Netflix spoil his appearance. Thus they were ready to buy the market on a gap-down open. Buy programs lasted all day into the close.

As for Wednesday, with NQ now clearly above breakout price level they may not feel the need to push the market up, and they may just let the market trade sideways

 

NQ support for Wednesday will be 7390.

-- NQ may just trade sideways or trend up as long as it stays above 7390.

-- Sell algos will be back below 7390, with the next support at 7335

 

 

NQ Guideline for Tuesday

NQ traded sideways in a very narrow range all day on Monday until the end of the day when Netflix reported its earning. Netflix plunged over 13 percent on Monday, certain to drag the stock market with it on Tuesday

 

Waver 5 up on the 60-minute chart has ended, it may now go into reverse or A-B-C wave down before rallying to retest the high.

Key inflection price level for NQ on Tuesday will be 7380

-- Bearish below with supports at 7317 and then 7290. 7290 is a key support as there would be massive algorithm selling on a break below 7290.

-- Should the Fed buying algorithm managed to push NQ back up above 7390 NQ is likely to retest the high. 

 

 

 

NQ Guideline For Monday

Following a large up day on Thursday NQ traded sideways in a very narrow range on Friday, a consolidation type of day.

 

Looking at NQ on the 60-minute chart, starting at June 28th swing low, NQ is now in wave 5 up, setting up a potential gap-up reversal type of day, although it could continue up in extended wave 5 rally simply because NQ is now in breakout mode on the daily chart.

Intraday inflection price for Monday will be at 7390.

-- Trading above it will be bullish

-- Breaking below it implies more selling with the next support at 7335, a critical support, a breakout price level on the daily chart.

NQ Gudeline For Friday

On Thursday, NQ opened with a gap-up above prior day high, then trend up without closing the gap or retesting prior day high. As such, short-selling algos were caught on the wrong side of the trade fueling the rally.

 

Key support for NQ on Friday is 7335, which is June swing high.

-- As long as NQ remains above 7335 selling should remains under control.

-- Should it break-back below 7335, the next support is 7290

-- A break below 7290 implies reversal, and is likely to trigger liquidation selling, see chart below

 

 

 

NQ Guideline For Thursday

On Wednesday NQ opened with a gap-down to support, then after closing the opening gap simply trade sideways below prior day low-turned resistance.

 

With the daily chart still above its 20-day moving average NQ may want to rally on Thursday. However, to do so, it has to break back above 7280 now resistance.

 

Key price level for NQ on Thursday will be 7280, now acting as resistance.

-- Trading above 7280 implies NQ may want to rally to test the June swing high.

-- Failure to break-back above 7280 implies consolidation if it can stay above 7240 or sell-off if NQ breaks below 7240 key support price level.

NQ Guideline For Wednesday

NQ traded sideways in a very narrow trading range on Tuesday, just below resistance at 7335 which was June 20th swing high.

 

Without heavy buying by the Fed to push NQ above 7335, double-top selling may push NQ back down to support before reattempting a breakout above the 7335 swing high.

 

Key short term, 5-minute price inflection level for NQ on Wednesday will be 7300

- First support is 7270, then 7230, then 7160-7180 price zone.   

NQ Guideline For Tuesday

On Monday, NQ opened with a gap-up, then after closing the gap early in the morning, trend up in a slow fashion.

 

With Trump trade war getting more intense, look for the Fed to continue to engineer buy programs to push the stock market up on Tuesday. Without many sellers NQ may just continue to rally until a break above June swing high.

NQ Guideline For Friday

On Thursday, ahead of the Trump import tariff coming into effect the Fed engineered buy programs lasted all day from the open.

With Trump increasing the intensity of his trade war rhetoric, the buy programs may even get more aggressive just in order to paint a positive picture of Trump trade war, but as every one knows, trade war is toxic and will bring down the global economy sooner rather than later. In the short run however, they can continue to juice the market.

 

On the short term intraday timeframe support for NQ on Friday will be 7065 and resistance at 7160

NQ Guideline For Thursday

With most traders still on holiday for the 4th of July the market may remain inside a trading range, and for NQ that would be between 7000 support and 7160 resistance.

Trump trade war rhetoric could easily change the market dynamics, and can cause a major selloff at any time.

 

However, on the short term 5-minute timeframe, key inflection price level for NQ on Thursday will be 7065

NQ Guideline For Tuesday

The 50-day moving average on the daily chart continues to provide support for NQ on Monday as a gap-down opening down to the 50-dma was aggressively bought.

 

With Wednesday as the Fourth of July holiday we can expect more aggressive buy program by the Fed designed to makes thing looks and feels good. However, trade war rhetoric continues to intensifies deflationary forces.

On the short term timeframe, key inflection price level for NQ on Tuesday will be7065, now serving as support, with resistance at 7160.