NQ Guideline For Monday

NQ traded sideways in a narrow range on Friday with the close above key intraday line-in-the-sand, the 200-period moving average on the 5-minute chart, which is at 7655 at Friday's closing, setting up a bullish Monday if NQ opens above 7655.

 

The daily algos are still long, and will stay long above the 20-dma on the daily chart, now at 7565, so there is no selling from the daily algos until NQ breaks above 7725 prior swing high where they would exit their long position to lock profit.

 

The intraday algos are also bullish above 7655. However, selling from double-top sellers at or below 7525 could cause NQ to pullback down, so there is a risk of heavy selling as NQ approaches 7725.

 

There will be some selling on a break below 7655 intraday LIS, support is at 7600. 

NQ Guideline For Friday

On Thursday NQ opened above key support triggering buy programs rocketing NQ up to resistance again before afternoon selling sets in. It seems like every morning rally is then followed by afternoon sell-off, a very common pattern worth noting and observing.

 

For Friday the key inflection price level / the balance point is at 7640

-- Above 7640 implies NQ should rally to above Thursday swing high before selling comes in.

-- Trading below 7640 could trigger intraday algos selling. If so support is at 7570 which is the 20-dma on the daily chart.

NQ Guideline For Thursday

On Wednesday NQ opened above prior day high, and above numerous supports, triggered algos buying and short-covering, rocketing NQ up to upper trend line resistance, with a small overshooting to the upside before tanking back down to support, setting up a bounce back up or a continuation back down to lower support.

 

Key line in the sand on Thursday will be 7570, the 20-dma on the daily chart, acting as support as of Wednesday's closing price.

-- Bullish bias above 7570 with trend-line resistance at 7670

-- A break below 7570 is bearish, likely to trigger algo sell programs. If so, lower support is at 7500. Should selling get out of control and NQ breaks below 7500, it could cause a massive liquidation decline.

 

NQ Guideline for Wednesday

On Tuesday, the day before the FOMC is to announce their policy the stock market traded sideways in a very narrow range.

NQ traded slightly below key inflection price level in the morning then traded above it in the afternoon. With the Fed set to announce a highly anticipated 25 basis point interest rate hike, the market may not react to the decision unless there is a surprise change in policy.

 

Key inflection price level for NQ on Wednesday will again be the 20-dma on the daily chart which is at 7575.

-- Bullish bias above 7575, upside target is 7650 resistance

-- Bearish bias below 7575, support is at 7490

NQ Guideline For Tuesday

On Monday NQ opened with a gap-down then quickly dropped down to the key support at its 50-day moving average on the daily chart, triggering massive algorithm buy programs, rocketing NQ back up to resistance which on Monday was the 20-day moving average on the daily chart, which was at the 7575 level.

 

NQ eventually managed to break above the 20-day moving average resistance 7575 level and then closed above it, setting up a rally day for NQ on Tuesday if NQ can stay above 7575 price level. If so, the next resistance and NQ target at is at 7650.

 

However a break-back below 7575 could trigger another round of selling, if so, downside target is again at 50-dma (7480)

NQ Guideline For Monday

On Friday NQ opened with a gap-up above prior day high, then immediately reverse back down, breaking back below it 20-day moving average support on the daily chart, and closing below it, setting up a continual decline for Monday unless NQ can break back above the 20-dma which is at 7575.

 

Thus, unless NQ can break back above 7575, the target down is the 50-day moving average on the daily chart, which was at 7485  area as of Friday closing price.

 

The 50-dma has been providing support for a while now, thus any decline to it should continue to be bought. The equity market would needs to be very bearish to for it to break below it.

 

A break below it could cause a massive liquidation selling as trailing stop-loss for the long position gets hit

 

The FOMC will have their September policy meeting on Tuesday and Wednesday. There should be NO surprises as the Fed is set to raise interest rate again.

NQ Guideline For Friday

With President Trump panicking about losing the November mid-term election to the Democrats because the Democratic congress is likely to impeach him, plus his inability to stop the Federal Reserve from raising interest rate the only options Trump has is to use the Exchange Stabilization Fund (funds for the PPT) to continue to push the stock market up in order to create an impression that all is well.

But without any new buyers because every one is long the stock market, rallies always seems to be choppy and short-lived. However, as long as all the major indices such as the Dow, the S&P 500 and Nasdaq remains above their respective key 50-day moving average there would not be many sellers of stocks as most major algos will remain in buy mode above the 50-dma.

 

On Thursday the PPT managed to cause NQ to open above prior day high, which triggered some short-covering spurts in he morning, but then without any other buyers, NQ simply traded sideways into the closing bell.

 

Key price level for NQ on Friday will be 7570, which is the 20-dma on the daily NQ chart, will be key support for Friday

-- As long as NQ remains above 7570 there would not be too many sellers. With so many traders still stuck in their short position from Thursday, any pullback down to 7570 will be used by the shorts to exit their long position thus providing strong support.

-- NQ would need to break below 7570 to generate addition selling to cause a quick decline.

 

NQ Guideline For Thursday

On Wednesday NQ opened and then quickly dropped down to key support level, the 50-dma on the daily chart. As usual, the PPT bought the 50-dma again, but the rally back up was weak as most traders has already bought the drop down to the 50-dma.

NQ has to break-back above its key resistance at the 20-dma to attract more buyers that can help propel NQ back up to the high again.

 

Failure to break-back above the 20-dma (7565) is a bearish sign, and makes NQ vulnerable to potential heavy selling, and if the 50-dma gets broken, could cause a cascade of selling.

 

For Thursday NQ support is 7470, resistance is 7565

NQ Guideline For Wednesday

By the time the market opened on Tuesday the plunge protection team (PPT) was able to push the market up, with NQ back up to just above key 50-day moving average on the daily chart.

Continual buying by the PPT plus the 50-ma algo buying at the open rocketed NQ up and up and up until it bumped against the 20-day moving average which acted as resistance on Tuesday. Heavy selling by the 20-ma algos pushed NQ back down towards the middle of the day range as it was where NQ closed on Tuesday.

 

Going into Wednesday, resistance will remain at its 20-dma at 7565 and support at its 50-dma at 7470. 

-- Breaking above its 20-dma may trigger some quick spike as the shorts covers.

-- But it is a break below 7470 support that is going to be more interesting as it may start to trigger some algo selling.

-- With trailing stop-loss congregating just below September low at 7430, a break below it could cause selling to get out of control