NQ Guideline For Monday

Again, NQ continued to trade sideways in a choppy narrow range trading action on Friday. Without any new buyer, as everyone who wanted to buy has bought and are now still holding long positions, and without new sellers because NQ is still trading above key support level, the 20-dma on the daily chart, NQ is going to continue to be choppy, narrow-range and non-trending.

 

Until NQ breaks below key support, it is going to continue to be choppy and narrow range, unless it can trigger some sort of short-covering on Monday.

 

Key balance point for NQ on Monday is 7390.

-- Bullish above 7390, upside target is a break above Friday swing high.

-- Bearish bias below 7390, with first support at 7360. Should NQ clearly break below 7360 we could see a quick drop down lower, next support is 7280..

 

NQ is deeply overbought on the daily chart. However, on Friday, President Trump National Economic Advisor, Larry Kudlow, is asking the Fed to lower interest rate by 50 basis points, which, if the Fed comply, could cause some short-covering rally.

NQ Guideline For Friday

Another sideways non-trending choppy day for NQ on Thursday, and I suspect it is going to continue to chop around until it breaks out of the range.

 

The current choppy trading range is 7280 support and 7404 resistance (7280 - 7404)

-- Remaining inside the range between 7280-7404 is an indication NQ is going to continue to be choppy.

-- Breaking out of the range could cause some breakout trending move, or false breakout that results in fast reversal

 

Key inflection price level for NQ on Friday will be 7350, bullish bias above, bearish bias below

NQ Guideline For Thursday

Again, NQ trade sideway on Wednesday, and is likely to continue to trade sideways as long as it remain above the 20-dma on the daily chart.

 

On Wednesday NQ dropped down to the daily chart 20-dma and bounced sharply from it, closing just below resistance, 7355, setting up a rally above 7355 resistance or a break-back down to re-test the 20-dma support, 7270

 

On Wednesday if NQ can trade back above 7355 it could trigger some short-covering spike. But failure to break back above 7355 could attract selling, with support again at 7270, the 20-dma on the daily chart.

NQ Guideline For Wednesday

A huge gap-up opening for NQ on Tuesday failed to attract much buying interest. After the initial short-covering spike soon after the open NQ then traded down all day long, a bearish day, with the open near the day high and the close near the low of the day.

 

Key intraday inflection price level for NQ on Wednesday will be 7360.

-- Trading back below 7360 is bearish, support remains at 7240

-- Bullish above 7360, but with NQ in deep overbought territory, the potential next resistance is again at 7400, then 7480

NQ Guideline For Tuesday

Following a large trending down day on Friday, NQ traded sideways in a consolidation pattern on Monday, setting up another large range trending down day, and it could happen on Tuesday, that is, as long a NQ does not re-break back up above key resistance level, 7420.

 

NQ closed near its upper trading range on Monday, 7375 resistance, 7292 support (7292-7375)

-- If NQ should trade above 7375 resistance on Tuesday, it could quickly spike up to 7420 key resistance.

-- Trading below 7292 support could trigger another round of selling. There is support at 7240

-- Trading inside the 7292-7375 trading range implies more chops, sideways trading action.

NQ Guideline For Monday

NQ sold off hard on Friday. Although NQ is still in an uptrend on the daily chart, it looks like wave 5 rally might have ended on Thursday last week.

The first confirmation that wave 5 on the daily chart has ended is a break below the 20-dma on the daily chart, which at Friday closing price was at 7240, and it may serve as key support for any sell-off on Monday. 7240 is also prior swing high now acting as support, thus, a break would implies the selling pressure is intense.

 

Key NQ inflection price level for Monday is 7390, with key support on Monday 7240 and key resistance at 7440, a 200 point range.

-- Bearish below 7390, with key support at 7240.

-- Bullish above 7390 with key resistance at 7440

 

NQ Guideline For Friday

Non-stop buy programs likely from the Fed/PPT continued all day on Thursday, designed to force the shorts to cover. NQ closed at the high of the day.

 

If the buy programs do not continue on Friday morning we would see NQ pulling back down to support, 7480 before rallying back up. Although not a high probability, a break-back below 7480 implies a bigger drop down to second support level, 7420

 

Key price level to watch for on Friday, and also our line-in-the-sand for NQ is Thursday swing high.

-- Trading below Thursday high implies NQ is pulling back, and in consolidation mode.

-- Staying above Thursday swing high is going to continue to cause short to cover, if so, although not a high probability, we could see another rally day.

NQ Guideline For Thursday

Daily trend is currently still up, but it is in overbought zone, and rally momentum on the daily trend is slowing down, every higher high has been sold hard.

 

On Wednesday the Fed waited until they have announced their decision before they triggered their buy programs, but the rally was sold hard, NQ still close above key support, still in bullish territory.

 

Key intraday line-in-the-sand for NQ on Thursday will be 7380

-- Bullish above, next resistance is 7480.

-- A break below 7380 is bearish o Thursday with supports at 7320 and 7300

 

FOMC statement on Wednesday was very dovish

NQ Guideline For Wednesday

The Fed continued to push the stock market higher on Tuesday, ahead of their policy announcement on Wednesday 

 

There is no doubt they will continue to support the market on Wednesday, but with the stock market in overbought condition on the daily timeframe we could continue to see sharp sell-off each time it makes a new higher high.

We are likely to continue to see the same pattern on Wednesday with stock market manipulators pushing the futures market up during low volume overnight trading and into the morning trading but profit-taking and selling push the stock market down in the afternoon.

 

On the daily chart, NQ is in its final stage of wave 5 rally from the December 24 low, and once it ends, we should see a return to sharp selling.

 

On the short-term intraday timeframe, key line-in-the-sand for NQ on Wednesday will be at 7360

-- NQ will continue to be bullish above 7365 with resistance again at 7400, then 7480.

-- NQ could selloff below 7360 with first support at 7320, then 7300

NQ Guideline For Tuesday

For the current rally that started on December 24th 2018, on the daily chart NQ is in its wave 5 up, its final wave up, and when it ends, we could expect a larger decline, a multi-day decline.

 

NQ is now in overbought condition on the daily chart and the 60-minute chart, thus the rally has started to get choppy and narrow range, with sharp pullback down to support before rallying back up again.

 

On Monday, NQ rallied up to higher high above Friday high before reversing back down to support, and then rallying back up in the afternoon.

 

On the 5-minute intraday time frame, support going into Tuesday morning trading will be at 7345.

-- Trading above 7345 at the open on Tuesday is an indication NQ is likely to rally to another higher high above Monday swing high before pulling back down to support. Resistances are 7400 and 7480.

-- Trading below 7345 at the open is an indication NQ is going to trend down in the morning, with key support at 7330. A clear break below 7330 could cause a quick decline to lower supports, first lower support at 7270.

NQ Guideline For Monday

On Friday NQ rallied in the morning then decline in the afternoon into the close, a typical Friday pattern as traders balances their book going into the weekend.

 

As of the close on Friday NQ remains in a strong bullish mode on both the daily timeframe and the 60-minute timeframe. However, both are in overbought condition, and vulnerable to a sharp pullback. And if the pullback violates key support, it could lead to a deeper pullback.

Key support for NQ on Monday will be 7310.

-- As long as NQ continues to trade above 7310 there is really not much selling pressure. As such NQ could continue to rally to higher high with the next major resistance is at 7400.

-- Trading below 7310 could start to run-over some trailing stop-losses that could quickly tank NQ down to the next support level which is at 7240, a strong support level. The stock market would need to get very bearish to break 7240 support. 

NQ Guideline For Friday

NQ traded sideways in a very narrow range on Thursday as profit-taking activities from overbought conditions continues cause a very slow drop..

 

Without any buyers and sellers the market continues to chop around in a narrow range sideways action. Friday tends to be a choppy day, thus without any unexpected market-moving news, we could reasonable expect NQ to trade sideways in a  narrow trading range again on Friday.

 

Key short term intraday inflection price level for NQ on Friday will be 7280.

-- NQ is bearish on intraday basis if it trades below 7280, with support at 7240.

-- NQ would turn bullish again intraday if it trades above 7280, first resistance is at 7325 double-top

 

President Trump is preparing the financial market for a no-deal trade negotiation with China. With the stock market in overbought situation, a no-deal announcement may cause a big stock market sell-off.

NQ Guideline For Thursday

Wednesday was the fourth consecutive day of rally where NQ closed near the day high, clearly manipulated by the Fed and the PPT in order to run over stop losses of those still holding short positions.

 

This rally is unsustainable and the drop could be fast and quick as most shorts may have covered. NQ is now in overbought conditions on the 5-min chart, the 60-min chart and the daily chart..

 

Without further aggressive buying by the Fed and the PPT, NQ is going to fall sharply down when it breaks key support, the first key support is the 200-ma on the 5-min chart.

 

But for now, going into Thursday trading session, key inflection price level is 7300.

-- If the overnight buy programs can again cause the market to gap-up above Wednesday swing high we could see another rally day. However, because NQ is now in overbought conditions on all major timeframes, longs are starting to be more  risky until NQ can pullback down to the 200-ma on the 5-min chart.

-- NQ is bearish below 7300, with first support at 200-ma on the 5-min chart.

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NQ Guideline For Wednesday

On Tuesday, after rallying up to higher high in the morning, NQ then spent the rest of the day in a choppy narrow range consolidation pattern, closing just below key inflection price level, 7240, which should serve as key inflection price level for Wednesday's trading session.

 

On the 5-minute chart, at the end of the day on Tuesday, NQ looks set to pullback down to support, the 200-ma right away in the morning, as long as NQ does not opened with a gap-up above 7240.

 

However, with buy programs normally running very active during low volume overnight globex trading session, opening with a gap-up could either cause a trending up move to another higher high, or a gap-reversal type of day. If it is a gap-reversal type of day, the reversal downside target is again the 200-ma on the 5-min chart.

NQ Guideline For Tuesday (June Contract)

NQ opened with a gap-up above key 200-ma on the 5-minute chart, no doubt the PPT was intervening in the market as Boeing shares tanked hard overnight Sunday nigh, after the Ethiopian Airline Boeing 738 Maxx 8 aircraft fatal crashed, the second Boeing 737 Max 8 crash since Ryanair Boeing 737 Max 8 crashed just a few month ago.

 

With non-stop buy programs, the market continue to rally all day, helped by short-covering. There was no pullback, as NQ continued to rally all day long, closing at the high of the day, setting up a high probability gap-up reversal down day on Tuesday

 

Key intraday inflection price level for NQ going into Tuesday trading will be at 7180 (June contract).

-- With a high probability of a choppy consolidation day following a large trending up day, a break back below 7180 is a clear indication that NQ is in consolidation mode. If so, the first support is 7140. then 7110.

-- Although a low probability, if NQ can stay above 7180 it could continue to rally to break above the recent swing high, 7240 June contract before profit-taking tank NQ back down, or short covering rocket NQ upward to higher level.

 

NQ Guideline For Monday - (Note that price level is stll based on March 2019 contract)

On Friday NQ opened with a huge gap-down but then reversed and rallied most of the day, closing just below key resistance level, 7035, which will serve as our key line-in-the-sand for Monday.

 

Should NQ trades above 7035 on Monday, with or without a gap-up, it is likely to trigger some short-covering, which could cause a rally. If so we could see a rally to 7075 resistance before dropping back down towards the 7035 area. However, if the market would get very bullish the next very strong resistance is at 7100.

 

Failure to trade back above 7035 is bearish, an indication NQ is going back down. If so, first support zone is 7000. If that support is breached we could see NQ trading down to test Friday's swing low. A break below Friday swing low that is accompanied by very bearish market internals could cause  a large down trending move.  

NQ Guideline For Friday

On Thursday NQ opened below key support price level, 7110, which happens to be also below prior day low, triggering massive algos sell programs, and dropping down below strong support, the 20-dma on the daily chart.

 

NQ has now clearly broken below the 20-dma on the daily chart, indicating the uptrend that started at the end of December 2018 has officially ended. Unless NQ can break back and stay above its 20-dma on the daily chart, NQ is set for a multiday fast and large decline.

 

NQ may consolidate the large down day on (Thursday's decline) simply because Friday tends to be a choppy day. However, should NQ continue to drop lower on Friday instead of consolidation we could see a huge fast decline as buyers are forced to bail out of their long positions.

 

Key intraday balance price level for NQ on Friday will be 7040.

-- NQ is bearish below 7040 with support at 7000. Should NQ breaks below 7000, we could see a fast and large drop.

-- NQ is bullish above 7040, but resistance is at 7080

 

NQ Guideline For Thursday

NQ again traded sideways in a narrow trading range again on Wednesday, with NQ closing down at the low of the day, setting up for a potential bearish day on Thursday.

 

Key price level for NQ on Thursday will be 7110 support and 7140 resistance.

-- The next strong support below 7110 is 7050, the 20-ma on the daily chart. If NQ should trade below 7110 it could quickly tank down to 7050 before bouncing. If the market do get very bearish and NQ breaks below 7050 we could see a fast and large liquidation decline.

-- If NQ should trade back above 7140, the next upside target is a break above Wednesday swing high.

NQ Guideline For Wednesday

After breaking back above the 200-ma on the 5-minute chart on Tuesday, NQ opened above the 200-ma on Wednesday, indicating a bullish day.

 

Then, after dropping back down to retest the 200-ma on several occasions, NQ then rallied all day in a slow choppy pattern, simply because the rally that started on December 24th 2018 is simply running out of steam, and in overbought territory on the daily chart, may be ready to go into a sharp decline.

 

Key intraday support on Wednesday will be 7140

-- Bullish above 7140, but overbought conditions on the daily could keep NQ in a choppy rally mode.

-- Trading below 7140 is going to be bearish but first support is 7100. with crucial support at 7050. A break below 7050 could trigger a waterfall decline.,

 

NQ Guideline For Tuesday

Again NQ opened with a huge gap-up and then sold off hard again. However, unlike last Friday, On Tuesday NQ crashed below key support but end of day profit-taking bounced NQ back up to close at key balance level, setting up a rally or a decline on Tuesday

 

The current NQ uptrend on the daily chart has lost most of its upside momentum and ready to crash down hard. The only thing still holding it up is the 20-day moving average on the daily chart. A break below could quickly tank NQ down hart, but remaining above the 20-dma implies more choppy and slow rally. 

 

Key inflection price level for NQ for Tuesday trading will be 7135

-- Bearish bias below 7135 with first support at 7100. Then if that does not hold the decline, the next support is 7050. A clear break below 7050 should trigger a sharp multi-days decline

-- If NQ should open and stay above 7135 on Tuesday we could see another rally but likely very narrow range and choppy.

NQ Guideline For Monday

As usual, a sideways trading pattern for NQ on Friday, with a gap-up open and a downtrend in the morning that was then followed by a rally in the afternoon with a close near the high of the day.

 

The rally momentum on the daily chart is getting very slow and with the rally in overbought condition. NQ would need to pullback down substantially to get more buyers to come back into the market.to reignite the rally. Until then we may continue to see slow choppy narrow range rally.

 

Key support price level for NQ going into Monday trading will be 7130.

-- Above 7130 NQ would remain in a bullish mode on Monday with the next upside target is a break above Friday swing high with normal trending target at 7190, and could pushes high if the market becomes very bullish

-- Trading below 7130 is bearish and could attract some selling with the next lower support at 7110. If that happens to break, the next lower support is 7040