NQ Guideline For Friday

NQ traded sideways in a very narrow range on Thursday, and may be setting up for a range expansion on Friday.

 

With President Trump failure to get trade deal with China and also failure to get nuclear weapon deals with North Korea, the stage is set for PPT market intervention in overnight trading in order to generate short-covering on Friday.

Key intraday inflection price level on Friday will be 7110

-- If Thursday night buy programs could cause a large gap-up open and trigger short-covering we could see a big rally on Friday. However, if selling should stall any short-covering rally, we could see sharp move back down.

-- If NQ should open below 7110 on Friday look for NQ to try to drop back down to support 7025-7050 before rally back up.

NQ Guideline For Thursday

On Wednesday NQ opened with a gap-down below key inflection price level 7125, then briefly rally up to retest it before tanking down, breaking key supports.

 

With the daily chart still in a uptrend the decline stalled at ADR downside targets and then rally back up to the same price level, 7125 and close right at those level, setting up either a rally up or a decline back down on Thursday.

 

Key price level for NQ on Thursday will be around 7120.

-- Bullish above it, first target up is a break above Tuesday swing high.

-- Bearish below it, implies a retest of Wednesday swing low.

NQ Guideline For Wednesday

On Tuesday NQ traded sideways all day on Tuesday bouncing off the 200-ma on the 5-minute chart. The current uptrend on the daily chart that started from the December low is starting to lose momentum and may be ready to sell-off hard.

 

There are several layers of supports that is still holding the uptrend up. Should it starts to break we could see a cascade of selling. Key support going forward is 7100, then 7090 and 7080

 

On the intraday time frame, inflection price level for NQ on Wednesday will be 7125.

-- NQ should continue to rally above 7125, next upside target is a higher high above Monday's swing high..

-- Trading below 7125 is bearish but strong support zone are at 7080-7100. Should NQ starts to trade below 7080, selling could overwhelm buying and tank the market hard. Next support is 7000

NQ Guideline For Tuesday

On Monday, NQ opened with a huge gap-up above prior trading range high 7100 (resistance), a breakout day, then pushed higher into breakout upside target before trading sideways and then pulling back down towards key support at the end of the day.

 

Key intraday price level for NQ on Tuesday will be 7100, a very strong support price level courtesy of prior consolidation high plus the 200-ma on the 5-minute chart and the 200-dma on the daily chart.

-- As long as NQ remains above 7100 breakout price level, the breakout is still in progress. As such NQ should continue to rally with the next upside target is a break above Monday's swing high.

-- Trading back below 7100 is bearish, and indication the breakout is failing. If so we could see fast and sharp decline as breakout traders are forced to exit their long position and reverses to shorting the market.

 

Trump's plunge protection team is likely to be very active as trade negotiation with China comes to an end at least for now. Trump would want to see positive stock market response to the end of current trade talk.

NQ Guideline For Monday

For the last seven consecutive trading sessions, NQ has not been able to break above 7100, the 200-dma resistance, as it remained trading in a narrow range between 7000 support and 7100 key resistance, the 200-dma on the daily chart.

 

 Until NQ can clearly break above 7100 and trigger some short-covering we would continue to see NQ either continuing to trade sideways below 7100 and above 7000, or drop back down to its 20-dma on the daily chart, 6950 level, before attempting to break above 7100.

 

Key intraday equilibrium price level for NQ on Monday will be 7060.

-- NQ is bullish above 7060 with upside target at 7100-7130. As long as NQ does not get too bullish on a break above 7100, it should drop back down to its equilibrium after rallying up to upside targets.

-- Dropping back below 7060 is bearish intraday, with first support at 7000, a level where NQ could rally back up towards it equilibrium price level. However should NQ become very bearish on and break below 7000 the next key support is 6950, its 20-dma on the daily chart.

NQ Guideline For Friday

NQ traded sideways all day just below the 200-moving average on the 5-minute chart. With Friday's tendency to be choppy, we could see the same pattern again, choppy sideways.

 

Key balance price level for NQ on Friday will again be the 200-ma on the 5-minute chart, now sitting at 7060 as of Thursday's close.

-- Trading below 7060 is bearish, NQ may continue to trade sideways just below 7060.

-- Above 7060 is bullish for NQ but it is also likely to trade sideways just above it, with resistance at 7100

 

NQ would need to open below Thursday low to cause it to tank hard. If so, the next support is at 6935, the 20-dma on the daily chart.

NQ Guideline For Thursday

NQ traded sideways again on Wednesday still stuck between 7100 key resistance and 7030 key support, and then closing right in the middle of the trading range. It may would have to open outside the range to trigger a breakout trending move away from the range.

 

On Thursday support is 7030 and resistance is 7100 (7030-7100 trading range) Where it opens in relation to the range will determine whether or not NQ is going to continue to trade sideways or breakout.

-- Opening outside the range has the potential to cause a trending move out of the range. If so, it will not break back into the range.

-- Opening inside the range offer high probability false-break out of the range.. If so, look for fst reversal.

NQ Guideline For Wednesday

NQ traded sideways in a narrow trading range below key resistance, the 200-dma on the daily chart, now at around 7100. Failure to clearly break above the 7100 level soon could trigger profit-taking and short-selling that could tank NQ down hard.

 

On the short-term intraday timeframe, on Wednesday NQ key resistance is at 7100 and key support is at 7060. A clear breakout of the range could cause a trending move out of the range. 

NQ Guideline For Tuesday

With the current round of US-China trade negotiations coming to an end, regardless of what happened at the negotiation, President Trump will declare victory. In addition, the PPT buy programs is likely to be active starting Monday night and into Tuesday, pushing the market upward to make him look good..

With NQ daily chart still in bullish up trending mode, but nearing its key 200-day moving average, now at 7100, it would be in their interest to push NQ above 7100 in order to trigger short-covering rally. If so, the next resistance is not until 7300. A break above 7100 could catapult NQ up to 7300 in one or two days.

 

Key intraday inflection price level for NQ on Tuesday will be 7030

-- Above 7030 NQ is in bullish mode with key resistance at 7100. A break above 7100 could trigger short-covering rally. If so the next resistance is 7300

-- However, if NQ should trade back below 7030, we could see a fast drop to 6970 support. Should that break the next support is not until 6900

NQ Guideline For Friday

NQ tried to sell-off on Thursday with the opening below the key 200-ma on the 5-min chart, but was not able to break through multiple support sources at 6970 where support buyers overwhelmed the sellers, causing a rally off support.

NQ is now stuck between 7070  resistance coming from the 200-dma on the daily chart and 6970 support. Unless NQ can breakout of the zone 6970-7070 NQ is likely to continue to remain choppy inside the range. .

The stock market will be closed on Monday for the President's day holiday, thus we could see a choppy sideways narrow range trading action on Friday

NQ Guideline For Thursday

On Wednesday NQ opened with a large gap-up, and then rallied right away up to 7070 resistance before heavy selling at resistance pushed NQ back down where it  then spend the rest of the day trading sideways. Wednesday's rally was the second attempt to break above key resistance, the 200-day moving average, now located at 7100, and the second failure.

 

Going foreword, 7100 price level, the 200-day moving average on the daily chart, will remain a key resistance level, and failure to break above that level soon could attract heavy selling which can tank NQ back down. However, as long any decline does not break below key support the rally should resume.

 

On the intraday 5-minute timeframe, key price level to watch for on Thursday will be 7000, the 200-ma on the 5-min chart.

-- If NQ remains above 7000 on Thursday we could see another rally attempt to resistance, 7070-7100. Should NQ clearly break above 7100 we could see more short-covering.

-- Trading below 7000 could trigger some selling with downside target at 6900. However, there are numerous support levels that could easily stall the decline.

NQ Guideline For Wednesday

NQ opened with a large gap-up above breakout price level, and then trend up on Tuesday morning before spending the rest of the day trading sideways in a very narrow trading range, setting up for another leg up on Wednesday or a pullback down move to support on Wednesday, depending on where it opens in relation to key intraday support price level.

 

Key intraday support for NQ on Wednesday will be 7015.

-- If NQ should open and stay above 7015 on Wednesday we could see a quick rally to resistance zone, which should starts at around 7070 and up to 7100

-- Should NQ opened below 7015 however, we could see a quick drop down to support which is at 6955 where it should bounce back up, unless of course the market gets very bearish.

 

With President Trump's trade negotiators now in China we could see the PPT becoming very active at night tonight pushing the futures market up just to make Trump looks good.