NQ Guideline For Friday

After trending down to 200-dma support on Wednesday NQ consolidated and trade sideways on Thursday setting up another trending down day on Friday.

 

Key support on Friday is again at the 200-dma on the daily chart, now at 7190 as of Thursday's close.

-- Should NQ trades below 7190 on Friday e could see another large down day on Friday with possible targets at 7100 and then 7000 - 7050.

-- If NQ stays above 7190 on Friday we could see another choppy sideways trading pattern, the usual pattern for Friday.

 

NQ has now traded down to below 7190 key support in overnight trading. Unless the PPT can push the market up by the opening bell, we should see liquidation selling down to above targets, 7100, 7050 and 7000.

NQ Guideline For Thursday

On Wednesday NQ opened with a huge gap-down to support, then trend down in the morning to the 200-day moving average on the daily chart, now acting as strong support before reversing a rallied.

 

Key intraday for NQ on Thursday will be 7220.

-- As long as NQ can stay above key intraday inflection price level on Thursday we should see a rally up to resistance 7270-7280 price zone. If resistance hold, we could see NQ dropping back down. However, should NQ breaks above 7280, we should see another round of buying activities and a rally to the next upside resistance 7320.

-- Should NQ trade back below 7220 on Thursday we could see another trending down day.

NQ Guideline For Wednesday

NQ opened above key intraday balance price zone on Tuesday, which triggered buying activities right at the open. However, with the daily timeframe in sell mode intraday buyers were quickly overwhelmed by selling.

 

After a brief spike soon after the open NQ trend down all day, closing at the day low, setting up a follow-through down day on Wednesday.

 

Downside target on the daily timeframe is still about 7050, but key support on the daily chart, the 200-day moving average which should generates a lot of buying activities is now at 7200, a price level that may cause some bounce, and worth watching.

 

Key intraday inflection price level for Wednesday is again at 7320, bullish above, bearish below.

NQ Guideline For Tuesday

NQ traded sideways in a choppy consolidation pattern on Friday, then followed by a holiday Monday, so there was no trading on Monday.

A narrow range sideways pattern on Friday was a setup for a large move away from the balance price level, 7320. The direction of the move will depends on where NQ trades in relation to its key intraday inflection price level, which for Tuesday will be 7320.

-- Trading above 7320 could trigger some intraday short-covering rally, with upside target of 7400.
-- Trading back below 7320 is very bearish and could attract selling. If the selling should break below Thursday low, 7270, we could see liquidation selling as stop-loss gets hit.

NQ Guideline For Friday

A huge gap-down open for NQ on Thursday. With the downside target range met/exceeded right at the open NQ simply spent most of the day consolidating the huge opening gap.

 

On Friday, key inflection price level for NQ will be at 7290.

-- Above 7290 we could see NQ rallying back up to 200-ma resistance, 7390 as of Thursday close, then dropping back down.

-- Below 7290 NQ is vulnerable to heavy selling pressure. However, NQ needs a sustained break below Thursday low to tank NQ lower.

NQ Guideline For Thursday

NQ simply traded sideways in a choppy and very narrow trading range on Wednesday, setting up a big move, up or down, and the big move could come at any day, and tomorrow could also be the day.

 

The daily chart for NQ is in Sell Mode, thus the Fed/PPT is the only major buyer holding the stock market up, in order to make it looks as if the US is not affected negatively by the trade war with China. It is not going to last, the stock market is set to decline sooner rather than later.

 

Key price level for NQ on Thursday will be 7455.

-- Choppy sideways or rally above 7455.

-- Potential sell-off day below 7455

NQ Guideline For Wednesday

NQ opened above inflection price level on Tuesday, as expected, rallied back up to 200-ma resistance on the 5-minute chart, and then eventually broke above it, and remained above the 200-ma at the close.

 

With NQ closing just slightly above the 200-ma on the 5-minute chart, we could see either a rally if it trades above the 200-ma, with the next upside resistance at 7510n or,

 

If NQ opens below the 200-ma on the 5-minute chart we could see a down day on Wednesday. If it is a down day we could see large liquidation selling.

 

With the long holiday weekend coming this weekend, we could see a very active PPT supporting the stock market. 

NQ Guideline For Tuesday

NQ opened with a big gap-down on Monday then traded sideways in a choppy pattern all day on Monday, closing at just below the key 50-ma (7400) on the 5-minute chart.

 

7400 will then serve as key inflection price level for Tuesday.

-- Trading above 7400 on Tuesday morning is an indication NQ wants to rally back up to the balance price level, the 200-ma on the 5-minute chart. As of the close on Monday, the 200-ma on the 5-minute chart was at 7505, which should act as strong resistance on Tuesday.

-- If the open is below 7400 price level on Tuesday we could see heavy selling, with the first downside target is a break below Monday swing low. Once the break below Monday low occurs, we could see either an acceleration to the downside with lower target down to 7000 to 7100 zone, or a fast reversal UP in case of false-break down.

 

Falsebreak Reversal Pattern (New Low below = Monday Swing Low)

NQ Guideline For Mnday

Last Friday was a typical Friday trading pattern, a sideways consolidation pattern, trading between support and resistance, with morning rally that got sold in the afternoon.

 

On Monday we could see either a rally, if it can break above resistance at Friday swing high and trigger short-covering, or sell-off down if NQ should trade below support at Friday swing low.

 

20-day moving average resistance on any rally is around 7700. If NQ should break below Friday low, and stay below Friday low we could see large 200-300 points down day.

 

Ahead of the long memorial day weekend holiday the PPT is going to be very active in order to make President Trump looks good, so we could see bullish week this week.

NQ Guideline For Friday

As expected, the PPT buy programs was triggered immediately right at the open to cause a rally above the 50-day moving average.

 

They are going to continue their buy programs on Friday. As such, look for NQ to rally up to the 20-day moving average before coming back down due to profit-taking and selling coming in at the at the 20-dma, 7700 on the daily chart.

 

Key short term intraday inflection price level for NQ on Friday will be 7620.

-- Trading above 7620 is an indication the PPT is winning, if so the next upside target is 7700.

-- Trading below 7620 is an indication selling is heavy, and it needs to go down to support at 7530  before going back up again.

NQ Guideline For Thursday

With the stock market ready to tank again on Wednesday, the Fed/PPT aggressive buying caused the stock market to rally again on Wednesday.

NQ rallied back up to its key 50-day moving average (7530) on the daily chart, and close just below it, making the 50-dma, 7530, as key price level for NQ on Thursday.

 

Trading above 7530 on Thursday could cause more short-covering rally, and the Fed /PPT may want to make sure that selling does not get out of control, so they may want to continue to push the stock market higher.

 

Trading below 7530 could attract selling, but the Fed/PPT is going to be active, thus, selling may be kept under control.

NQ Guideline for Wednesday

After a large down day on Monday NQ spent all day Tuesday consolidating Mondays' decline. What happens next will depend on whether on not consolidation is completed.

 

Once consolidation has ended we should see another large down day again. However, if it is still in progress and needs to rally higher to the next resistance zone we should see another rally day on Wednesday.

 

Key price level for Wednesday will be 7440.

-- If NQ can stay above 7440 on Wednesday we could see another rally to higher resistance7520 to 7540 price zone.

-- Trading below 7440 is an indication that consolidation may have ended and that the next large down day is in progress. NQ needs to break below Monday's swing low to trigger huge sell programs that can tank NQ down to the next support level, the 200-day moving average on the daily chart, now at 7200.

 

However, the sell-off often overshoot support, at least temporarily, if so, lower potential downside target is at 7000-7100

NQ Guideline For Tuesday

Trade war between the United States and China continued to drag the stock market down on Monday with NQ falling about 300 points from Friday close. Trade war is going to get more intense, even if there is a temporary truce. Unless the Fed announces QE4 and cut interest rate, we are witnessing the beginning of a multi-year stock market decline.

The 1930's depression was a result of trade war, and it is coming full cycle, the current trade war will also usher in another great depression. Politicians do not learn from history. 

 

On a short term intraday time frame, key price level for NQ on Monday will be 7320.

-- If NQ can stay above 7320 at the open on Tuesday we could see an oversold bounce, and likely very choppy, with upside target of 7440 and if the breaks, then 7500.

-- Should NQ open and trade below 7320 on Tuesday, we could see another large trending down day, with first support at 7200, the200-day moving average on the daily chart, but it is likely to be broken, with lower downside target at 7000 to 7050.

NQ Guideline For Monday

On Friday, just like on Thursday, NQ again bounce off the key 50-day moving average on the daily chart, after breaking below it, as buyers continues to buy the 50-dma at 7500 price level.

 

NQ would need to close below the 50-dma for the major algos to change their bias from buying the dip to selling rallies. So far, NQ has not closed below the 50-dma on the daily chart.

 

Thus it is still very possible for NQ to either continue to rally  on Monday if it trades above key intraday inflection price level, which for Monday will be at 7580

 

Trading back below 7580 will be bearish intraday. If so, key support is again at 7500, the 50-dma on the daily chart.

 

NQ Guideline For Friday

On Thursday NQ opened with a huge gap down to below prior day low triggering sell programs tanking it down to below 50-ma on the daily chart, 7500, before it bounced and reverse back up to close at the high of the day and at key resistance price level, the 200-ma on the 5-min chart.

 

On Friday key price level will be the 200-ma on the 5-minute chart which as of Thursday's closing price was at 7810, bullish above and bearish below it.

 

President trump tweets about trade negotiations with China should play key role for the market direction on Friday

.

NQ Guideline For Thursday

On Wednesday NQ traded sideways, consolidating the large down-trending move on Tuesday, working out the oversold conditions. Once consolidation has ended it should be followed by another large down-trending day, and Thursday may be the day the market trend down again.

Key price level for NQ on Thursday will be 7680, now acting as key resistance.

-- Trading back above 7680 implies NQ is still in consolidation mode.

-- Trading below Tuesday low of 7580 is an indication NQ is trending down again. If so, strong supports are at 7536 prior swing high and 7500. However, heavy selling could crash NQ down below 7500 support, at least temporarily.

 

The Fed will be active buyers of the market on Thursday. N has started selling-off in overnight trading Wednesday night.

 

NQ Guideline For Wednesday

On Tuesday sellers came back with a vengeance, overwhelming the central bank buying tanking the stock market very hard. NQ fell over 200 points from Mondays manipulated closing price.

 

Again, on Wednesday, central bank came back to buy very late in the day, pushing NQ back up about 100 points in the last half an hour of trading just to make the stock market not look very bad.

 

The bear market has returned with a vengeance. Dip buying should continue for a while until the stock market has gone down enough. For NQ, buying the dip activities should continue above 7500 critical support.

 

On the short term intraday timeframe, key inflection price level for NQ would be 7680, prior low now resistance. NQ closed just below that level on Tuesday.

-- On Wednesday if they are able to manipulate NQ back up above 7680, we could see NQ rocketing back up to 7750 resistance.

-- Should NQ failed to break back above 7680, sellers should come back in with first support at Tuesday low. A break below Tuesday low could quickly tank NQ back down to lower supports at 7536 then 7500

 

Trade war between the US and Chine is getting more intense, and it is very bearish for the market.

.

 

NQ Guideline For Tuesday

With the stock market ready to open and crash on Monday due to Trump's trade war rhetoric, the Fed was ready for massive buy programs that lasted all day on Monday, closing the market at the day high.

 

The stock market is clearly topping, and unless the Fed is ready for QE4 and lowering of interest rate, the stock market should soon resume its bear market decline that started in October 2018..

 

On the intraday short term timeframe, key inflection price level for NQ on Tuesday will be 7785.

-- Bullish above, if so, look for sideways pattern or possible rally day.

-- Bearish below with key support at 7750, the breakout level on the daily chart.

NQ Guideline For Monday

On Friday, the Fed buy programs managed to gap-open NQ up above breakout level, triggering short-covering activities then continued all day, not allowing the shorts to exit without pain. NQ closed at the day high just below prior swing high, now key resistance level, 7870.

 

With NQ closing at the day high and in overbought territory on the intraday 5-minute chart, NQ wound need to break above 7870 and trigger more short covering to cause another rally day.

 

Should NQ fail to break above the high on Monday, or break and fail to stay above the high 7870, we could see a sharp drop down to support, first support is at 7800 for Monday

 

The current price action is starting to get more volatile again, typical of a topping pattern, sharp selloff followed by sharp rally, but NQ needs a sustained break below breakout level, 7750 to cause a sustained selling that could last 2 to 3 months.

 

Key price level for NQ on Monday will be 7870 resistance and 7750 support.
-- Rally above 7870.
-- Potential Crash below  7750

Dow futures has dropped 500 points as China considers cancelling trade talk due to President Trump tariff  threats. Crash alert
 

NQ Guideline For Friday

NQ tanked down below critical breakout support level on Thursday then rally back up to test the break in the afternoon, closing just below 7740 support now-turned resistance.

 

With so many traders on the buy side or sold naked put options, a continual decline could get very ugly very quickly.

 

NQ desperately need to get back above 7740 to keep selling under control With the Fed/PPT aware of the potential danger they are going to do whatever they can to push the stock market up. Whether or not they are going to be successful remains to be seen.

 

Thus key Line-in-the-Sand for NQ on Friday will be 7740.

-- Trading back above it should key sellers under control. If so we could see the  normal Friday pattern of choppy sideways consolidation. or a big rally day.

-- Failure to break back above 7740 and instead, breaks below Thursday low, we could see a fast 200-points NQ decline.

Beware of the sell in May and go away

NQ Guidelien For Thursday

No Change in the Federal Reserve policy on Wednesday. The Fed did not do what President Trump requested, which is a huge interest rate cut and a new round of quantitative easing.

 

The stock market sold off hard after the announcement. NQ tanked down to key support level, the 7740-7750 breakout support on the daily chart, and it is the third test, and it now has a really high probability of breaking. If so, NQ will tank hard as trailing stop-loss get triggered.

 

Thus, key price level to watch on Thursday will be 7740 (support as of Wednesday's close).

-- If NQ failed to clearly break below 7740 and run-over some stop-losses we should see a big bounce back up to resistance, now at 7820. NQ is in oversold territory on the 60-minute chart at the close on Wednesday, thus we can either see a clear break and tank down or rally back up to resistance.

-- A clear break below 7740 should trigger some stop-loss sell programs, thus could tank hard despite of the oversold condition as of Wednesday's close