NQ Guideline For Friday

NQ traded sideways in a consolidation pattern on Thursday, rallying in the morning and then declining in the afternoon.

 

With most traders out of the office on Friday for the long labour day weekend, and with Friday's tendency to chop around, the stock market may just chop around.

However as always, we must be aware that anything is possible. With NQ in breakout mode, if the shorts continue to cover NQ can have a strong rally day.

 

Key inflection price level for NQ on Friday will be 7645.

-- Bullish bias above 7645, next upside target is a higher high above Thursday swing high.

-- Trading below 7645 is bearish for Friday, support is 7590

NQ Guideline For Thursday

NQ is currently in breakout mode on the daily chart after it broke above July swing high which has forced the shorts to cover and pushing NQ into a parabolic move up, often called a blow-off phase.

When it end we should see a sharp drop, but where it ends is anyone's guess. But NQ is now entering very overbought conditions and those long may starts to lightened up on their long position. Profit-taking activities may starts to set in soon.

 

Key inflection price level for NQ on Wednesday Morning will be 7660.

-- Trading above 7660 should keep short-covering activities alive.

-- A break below 7660 could force some profit-taking selling activities. If so, strong support is at 7600.

NQ Guideline For Wednesday

On Tuesday, NQ opened with a gap-up above prior day high triggering short-covering, but heavy selling and profit-taking activities pushed NQ back down to test breakout support.

Breakout support held all day on Tuesday, but heavy selling kept NQ just above support all day thus created a very narrow range day.

 

On Wednesday, as long as breakout support price level at 7560 is not violated, NQ should then trend back up again. The next resistance resides at 7625.

NQ Guideline For Tuesday

A breakout day for NQ on Tuesday with a gap-up open above prior day high. After a brief arbs pushback, NQ rallied up and then closed at the day high, setting up another round of forced short-covering rally immediately if NQ can trade above key inflection price level at 7560 for Tuesday morning.

 

Trading below 7560 is an indication that profit-taking activities is overwhelming the buyers. If so first support and critical support is at 7517.50, which is Monday swing low, a breakout day low.

 

Going forward, 7517.50 will be the key support level.

NQ Guideline For Monday

NQ rallied on Friday and then close near the day high, setting up a high probability breakout above prior swing high of 7530 that was set in July.

A break could trigger stop-loss execution that could quickly catapult NQ much higher up as long a profit-taking on a break above 7530 does not overwhelm buying.

 

On a break above 7530, the previous swing high, should then make 7530 as key price level to watch, as a breakout always carry the risk of a false-break.

 

Going into Monday opening bell, 7490 will become key inflection price level.

-- If NQ can open and stay above 7490, it is likely to rally up and attempt to break above prior swing high of 7530.

-- Breaking below 7490 is an indication NQ is pulling back down to key support at 7450.

NQ Guideline For Friday

On Thursday NQ opened above support and then rallied up to strong resistance at 7480-7490 zone where sellers came in to sell, tanking NQ back down to just below opening low.

 

As long as NQ remains above key support on the daily chart, the 50-day moving average, NQ is going to continue to try to break through strong resistance 7480-7490 zone simply because the daily algos will continue to stay in their long position until it breaks above previous swing high, 7530 where stop-loss congregates just above it.

 

For Friday, the short term intraday 5-minute chart inflection price level will be 7430.

-- NQ has a bullish bias above it, but strong resistance remains at 7480-7490.

-- Trading below 7430 will have a bearish bias short term, support is at 7395-7400.

 

With Friday tending to be choppy as traders balances their books ahead of the weekend, expect sideways pattern, unless NQ breaks out above 7490 or breaks down below 7395.

NQ Guideline For Thursday

A very choppy rally for NQ on Wednesday. With NQ remaining above support on the 60-minute chart and the daily chart we should see NQ continuing to rally on Thursday as logn as support is not clearly violated.

 

Key support for NQ remains at 7400 on Thursday. And as long as NQ remains above 7400, longer term algos will continue to be on buy mode.

 

Next resistance for NQ is the double-top resistance at 7460

NQ Guideline For Wednesday

On Tuesday NQ opened with a gap-up above resistance triggering short-covering  rally in the morning but sellers came back in the afternoon overwhelming buyers, sending NQ back down to broken resistance now support.

For Wednesday 7395-7400 zone becomes key support.
-- Breaking back below 7395 is likely to trigger selling algos. If so, strong support is at 7300.
-- If NQ can stay above 7400 on Wednesday it is likely to trigger another round of buying activities. If so the upside target is a break above Tuesday swing high.

NQ Guideline For Tuesday

On Monday NQ remained inside prior day range, as such traded sideways in a narrow trading range. NQ also remained inside the daily chart 50-ma support at 7295 and daily chart 20-ma resistance at 7390. Until it breaks out of the 7295-7390 trading range NQ may continue to remains choppy.

 

On the 5-minute chart key inflection price level is 7380.

-- NQ would need to break above 7390 to trigger buying algos. However, it needs to break clearly above 7405 to cause short-covering that can catapult NQ up to break double-top resistance at 7460.

-- Trading below 7380 is bearish, strong support is not until 7295-7300

 

NQ Guideline for Monday

NQ is currently stuck between its daily chart 50-ma support and 20-ma resistance. On Friday NQ traded down to 50-ma support in the morning and then spent the rest of the day allying back up to its 20-ma, now resistance.

 

Going into Monday trading session NQ key inflection price level is the 20-ma on the daily chart which is at 7380 for Monday trading.

 -- NQ will have bullish bias above 7380 but would have to clearly break above 7420 to trigger heavier buying pressure.

-- Trading below 7380 is bearish but there is a very strong support at 7280, which is its 50-ma on the daily chart.

 

A clear break above 7420 implies the decline from August 9th swing high to August 15 swing low is just a corrective A-B-C wave, and an indication NQ is on its way to a new higher high above July swing high.

 

Failure to break above 7420 implies the decline is still in progress, and that the decline is not over.

 

NQ Guideline For Friday

On Thursday, NQ opened with a huge gap-up but failed to attract much short-covering activities. NQ then traded sideways for a while before selling off in the afternoon, closing at key inflection price level for Friday.

 

Friday key inflection price level for NQ will be 7390, bearish bias below and bullish bias above.

-- Trading below 7390 could attract some algos selling programs. If so, the next strong support is at 7290-7300.

-- Shorts may have to cover if NQ trades above 7390. If so the next resistance is at 7440

 

The decline from August 9 swing high to August 15 swing low is a clear a-b-c wave pattern.

NQ Guideline For Thursday

On Wednesday, NQ opened with a huge gap-down  below 7440 range support triggering breakdown sell programs, tanking NQ down through 7390 key support level, triggering more selling algos which then quickly tanked NQ to much lower level before finding support. NQ then spend most of the day trading sideways consolidating the early morning selloff.

 

With NQ now clearly below tis 20-moving average on the daily chart, NQ would need to break back above 20-ma to keep selling under control. key 20-ma on the daily chart is at 7390 at the close.

 

Support on Thursday is 7280 and resistance is at 7390.

-- Below 7390, NQ is still vulnerable to heavy selling. Lower support is 7280

-- Breaking back above 7390 could trigger some short covering. If so the next resistance is 7440

 

The collapsing Turkish Lira continued to spooked global markets

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NQ Guideline For Wednesday

NQ opened with a gap-up, but selling quickly overwhelmed the buyers. NQ then quickly dropped down to just above key support on the daily chart before rallying back up and closed up at the day high.

Key price zone for NQ on Wednesday will be 7440 support and 7460 resistance.
-- A break out of the 7440-7460 price zone is likely to trigger fast move away from the range. If so, support is again at 7390 and resistance is at 7490.

NQ Guideline For Tuesday

The equity market futures sold off hard overnight Sunday night, but massive buying by the Fed before the open on Monday managed to erased all the losses.

 

On Monday, the buy programs continue all morning, pushing NQ back up into 7490 resistance before sellers came back in. NQ then dropped back down towards Friday's low, just above the crucial 20-day moving average on the daily chart, now acting as key support.

 

Key price level for Tuesday will be 7390 support and 7440 resistance.

-- 7390 is a crucial support and a break is likely to trigger massive algo selling with the next support and target down is the 50-dma on the daily chart, at 7275 as of Monday's close.

-- Breaking back above 7440 could trigger some short-covering, with the next resistance again at 7490

-- Failure to breakout of the 7390 - 7440 price zone will keep NQ in a sideways pattern.

 

Contagion from Turkish currency crisis is going to be bearish for the market, and may be the catalyst for the selloff.

 

NQ Guideline For Monday

On Friday NQ opened with a gap-down and then trend down most of the day. End of day profit-taking activities helped pushed NQ back up a bit.

 

NQ low on Friday was at key 20-moving average on the daily chart, setting up some rally on Monday if NQ remains above 20-ma, or tank if NQ break below its 20-ma on the daily chart which at Friday closing was at 7390.

 

On the 5-minute timeframe, key price level for NQ on Monday will be 7440 resistance.

-- Failure to break back above 7440 will attract some selling with key support at 7390.

-- A break below 7390 on Monday is likely to trigger heavy selling, if so, NQ could tank very quickly down to the next support level, .7270.

 

Equity futures market is trading in the red in overnight  trading session, blamed on Turkish contagion.

NQ Guideline For Friday

On Thursday NQ opened just above support and then immediately rally to a higher high above prior day high before pulling back down, closing below key 200-sma support on the 5-minute chart, an indication wave 5 rally on the 60-minute chart has likely ended, and a-b-c wave decline targeting its 50-sam is in progress..

Unless the Fed buying algorithm can push NQ back up above key balance price level before the market opens on Friday, which on Friday will be 7485 , profit-taking ahead of the weekend could tank NQ down to lower supports, 7445 and then 7400.

 

Key price level for NQ on Friday will be 7485, bearish bias below, bullish bias above.

-- First support below 7485 is 7445. Unless the market gets very bearish 7445 support should hold. In the event the market gets very bearish, stronger support is at 7400.

-- Trading back above 7485 is going to trigger short-covering, if so the nest target is a break above Thursday swing high.

Note that Friday tends to be a choppy sideways trading patterns as traders balances their books for the weekend

NQ Guideline For Thursday

On Wednesday, NQ opened with a gap-down and then dropped down to 7440-7445 support zone before rallying back up where it made a higher high above prior day high before pulling back down.

 

On the 60-minute chart NQ has a clear 5-wave rally starting from the low on July 30th to today's high. If wave 5 has ended NQ would now drop down below its 20-ma going towards its 50-ma on the 60-minute chart.

Thus going into Thursday trading key support would be the 20-ma on the 60-minute chart, 7470 by the open on Thursday.

--  Trading below 7470 on Thursday could start to run over some trailing stop which should drop NQ down to lower supports, 7445. If the market does get bearish, lower support for NQ are 7400 but strong support is not until 7370

-- Trading above 7470 is an indication wave 5 has not ended. If so, the next upside target is a break above Wednesday swing high.

NQ Guideline For Wednesday

NQ continued to rally higher on Tuesday but was not able to break through 7490 resistance. NQ then traded sideways in a very narrow trading range.

Unless it can break out above 7490 resistance and triggers more short-covering, NQ may need to pullback down to support before rallying back up again.

Key support/resistance price level for NQ going into Wednesday's trading is 7475.
-- If NQ can stay above 7475 short-covering may help push NQ above 7490 resistance and trigger more short-covering. If so the next upside target is a break above July 25 swing high.
-- Breaking below 7475 could trigger some profit-taking decline. If so the next support is at 7440.

NQ Guideline For Tuesday

NQ broke above 7400 key resistance on Monday, then after a successful test of the breakout,  it then triggered short-covering thus triggering rally all day long.

NQ then broke above 7440 resistance and close above 7440 resistance at the end of the day, 7440 is now support going into Tuesday trading session.

 

Thus key support for NQ on Tuesday will be 7440.

-- Trading above 7440 should keep the short-covering rally going without a pullback. If so the next resistance is 7490.

-- Trading below 7440 should trigger some profit-taking pullback. If so, first support is at 7400

NQ Guideline For Monday

NQ traded sideways in a narrow trading range on Friday, consolidating the huge gain from massive Thursday rally.

 

Unless the shorts panic and cover, there is not many buyers at this level, thus NQ may continue to either trade sideways or pull back down to support  before rallying up again.

 

Supports on a pullback down are 7350 and 7320.

 

NQ needs a sustained break above 7400 resistance to force the shorts to cover. If so, resistances are 7450 and then 7490.

NQ Guideline For Friday

NQ opened with a large gap-down below prior day low, a breakdown open,  but the open was just above key 50-day moving average support on the daily chart.

 

The breakdown open was quickly reversed,  as the 50-day moving average algos came to buy aggressively, over-running the intraday timeframe breakdown sellers, clearly larger longer-term algos over-running the smaller groups of intraday traders.

 

NQ rallied non-stop all day breaking above the 20-dma resistance price level. With Friday normally a sideways consolidation day, NQ may just traded sideways on Friday.

 

Key support for Friday is now at 7300, with 7370 as key support/resistance price level.

NQ Guideline For Thursday

Key price level going into Wednesday trading session was the daily chart 50-day moving average as support at 7200 and the 20-day moving average as resistance at 7320. 

 

NQ opened inside the 7200 - 7320 range on Wednesday and stayed inside the range, as expected, trading in a sideways consolidation pattern. Until we get a breakout of the range NQ would continue to trade sideways.

 

Key price level going into Thursday trading session is again the daily chart 50-day moving average as support at 7200 and the 20-day moving average as resistance at 7320. 

 

With Wednesday as the second consolidation days following two large down days, NQ looks ready to drop down hard on Thursday. However, in order to do that NQ would need to break down below 7200 to trigger the 50-day moving average algorithm sell programs .

 

On the short term intraday 5-minute timeframe, key inflection price level for Thursday will be the 5-minute 200-period moving average, sitting at 7250 as of Wednesday close.

 

On Wednesday without any surprise news on the FOMC decision on interest rate at the July meeting, the market did not react at all. The next crucial meeting is not until September when the Fed is widely expected too raise short tem interest rate again.