NQ Guideline For Monday

Now that the G20 meeting in Japan is over, and Trump and Chinese President has met, Trump is going to announced that he has won, regardless of what happens, and that he is going to make the Fed buy the stock market to cause a big gap up and trend up day on Monday.

Whether or not we get a big rally day on Monday, anything is possible, we just have to wait. In the short run, the market manipulator can move the market in the direction they want it to go, thus Monday could be an up-day.

 

Key price level to watch for Monday will be 7720 (breakout level) .

-- NQ is in breakout mode above 7720.

-- Breaking back below 7720 is bearish, with key support at 7680

 

NQ Guideline For Friday

Ahead of the G20 summit in Japan this weekend, the stock market traded sideways in a very narrow trading range as many traders wanted to know if there is going to be a trade deal agreed between The US and Chinese President.

There is not going to be a trade deal between China and the US this weekend, but that does not mean the market may go up next week if the Fed would intervene aggressively to support the stock market, as in the short term the market can easily get manipulated. 

 

On Friday the market may continue to trade sideways in a very narrow trading range. Key inflection price level for NQ on Monday will be 7675, bullish above, bearish below.

 

NQ Guideline For Thursday

As expected, following a large trending down day on Tuesday, NQ consolidated sideways on Wednesday, setting up a large trending day, likely on Thursday, either up or down.

 

With the low on Tuesday sitting at prior swing high support on the daily chart, we could see NQ rallying back up to retest the recent swing high.

 

However, should prior swing high support gets broken, there is another crucial support for NQ coming in at 7567 area, the 50-day moving average on the daily chart. Should 7567 gets violated, we could see a cascade of selling to tank NQ much lower.

 

Key intraday price level for NQ on Thursday will be 7670.

-- Bullish above, with key resistance at the 200-ma on the 5-min chart.

-- Bearish below, with key support at 7567

 

G20 will meet in Japan this weekend, may be important for some people, but they will not be able to save the world economy, which is already in recrssion.

NQ Guideline For Wednesday

NQ opened below key support on Tuesday and then sold off hard, dropping down almost 150 points on Tuesday, a huge bearish down day.

 

A huge down day is often followed by a narrow range consolidation day. However, there is nothing stopping NQ from dropping down and trend down again on Wednesday.

 

The low for NQ on Tuesday was a test of prior swing high from June 11, 7625, with a small breach of support before trading sideways into the close. Should NQ break below that support on Wednesday we could see another large down day.

 

If on the other hand, support is not violated, we could see a sideways consolidation pattern on Wednesday, with a small chance of a strong rally.

 

Gold continued its massive short-covering rally on Tuesday

NQ Guideline For Tuesday

A choppy sideways price action with a very narrow trading range for NQ on Monday. The stock market is really losing momentum on the rally even after the Fed confirmed their dovishness at the last meeting. The real economy is already in bad shape all around, and the stock market should follow soon.

 

Key price level for NQ going into Tuesday's trading is at 7760.

-- Bullish above it

-- Bearish below it

NQ Guideline For Monday (NQ September Contract)

A typical Friday pattern on Friday, choppy and narrow range, with a small rally in the morning then consolidated the rest of the day, setting up a trending morning on Monday. Rally or huge gap-up open continued to be sold.

 

Inflection price level for NQ on Monday will be at 7765.

-- Trading above 7765 in the morning on Monday implies a rally to higher high above Friday's high, then if it continues to follow recent pattern, a higher high get sold.

-- Should the open on Monday be below 7765, we could see NQ declining to 7730, key support.

NQ Guideline For Friday

Again, on Thursday, Fed engineered gap-up open failed to attract sufficient short-covering and buying activities to sustain a rally, as gap-up open continues to be sold.

 

The real economy is in trouble and already in recession, although it will take at least several quarters of negative GDP to officially call it a recession.

 

Key inflection price level for NQ on Friday will be 7720.

-- Bullish above 7720 with resistance at Thursday high.

-- Bearish below 7720, wish first support at 7670.

 

The market tends to trade inside a trading range on Friday as traders balances their trading books, as such, we could see NQ trading between Thursday high as resistance and 7720 as support. Should the market gets bearish and breaks below 7720 we could see a sharp liquidation selling, with the next support at 7600. 

NQ Guideline For Thursday

The Fed dropped the word "patience" on Wednesday paving the way for a rate cut which could happen in July or September.

The Fed engineered rally managed to hold off selling on Wednesday. The Fed is certain to continue to buy for a while, thus we could see another rally day on Thursday, and into Friday.

 

NQ inflection price on Thursday will be 7650, and very bullish above.  Key support is 7600

NQ Guideline For Wednesday

Central planners managed to push NQ up above prior swing high and prior 50-day moving average on Tuesday, but it did not trigger much buying interest or short-covering. NQ was quickly sold with a close in the middle of the day trading range.

 

Central planners is certain to trigger more buying programs ahead of their policy decision announcement on Wednesday afternoon. With NQ closing above key 50-day moving average on the daily chart it could trigger some algos to exit their short and reverse long. Whether or not short-covering activities plus the Fed buy programs is enough to rocket the market higher on Tuesday there is no way to know.

 

Key price level to watch for on NQ on Wednesday will prior high (resistance) now turned support 7600.

-- As long as NQ remains above 7600 we could see a rally day or just another sideways consolidation day just like Tuesday's pattern..

-- A break-back below 7600 is bearish, however, the Fed will intervene to support the market for President Trump.

NQ Guideline For Tuesday

Another narrow-range choppy consolidation pattern for NQ on Monday, and they are still not able to close NQ above the key 50-day moving average on the daily chart, 7540.

 

The FOMC will meet this week, and many investors may be waiting to see if the Fed is going to drop the word 'patience" from their minutes before making their decision. As such we can see another day of choppy action on Tuesday.

Key intraday inflection price level for NQ on Tuesday will be at 7530

-- Opening below 7530 implies a drop down to 200-ma on the 5-min chart, where it either bounce from it or break below it. A break below indicates a further decline, with next support at 7440

-- If they can cause NQ to open above 7530 we could see a rally to higher high above Monday high. With many still waiting for the FOMC language on Wednesday before they make their major decision, a higher high could get reverse back down.

NQ Guideline For Monday

NQ continue to trade sideways on Friday, below the 50-day moving average on the daily chart (7540), as the Fed failed to trigger enough buying interest to push the market higher.

 

Many traders and investors may be waiting for the Fed's language at the end of their meeting on Wednesday to make their decision for the next move out of the current range.

 

It is expected that the Fed would drop the word "patience" at the next meeting this week to pave a way for their interest rate cut at the July or September meeting, as requested by President Trump.

Inflection level for NQ on Monday will be at 7490, with key breakout support at 7440 and breakout resistance at 7540.

 

NQ would need to breakout of the 7440-7540 trading range to generate a trending move out of the range.

NQ Guideline For Friday

They tried to rallied NQ on Thursday but without buyers NQ again failed to break above the 50-dma on the daily chart, then traded sideways in a very narrow trading range.

 

Unless they can clearly break above 7540 and cause a short-covering, we could see another choppy day, particularly as Friday tends to be choppy sideways type of day.

 

If instead of break out to the upside, NQ break below Wednesday low where trailing stop-losses now resides, we could see a quick liquidation-type of down-move, particularly if it can break below 7440 support. If so, strong support is now at 7340.

 

Inflection price level for NQ on Friday is 7510

NQ Guideline For Thursday

NQ opened below line-in-the-sand on Wednesday, then after testing it from below, proceeded to trade downwards in a very narrow choppy trading range, setting up a potential big move on Thursday morning, the direction likely down if the open is below LIS, but it could also be up if the opening action is above LIS.

 

Key line-in-the-sand (LIS) for Thursday will be 7475.

-- A bearish morning action could tank NQ down to supports levels, they are 7440, 7425 and then 7345 which is the 20-day moving average on the daily chart.

-- Above 7475 we could see NQ rallying up to the 200-ma on the 5-min chart, which is at 7505, or up to 7540 which is the 50-day moving average on the daily chart.

NQ Guideline For Wednesday

On Tuesday, an engineered gap-up open above the key 50-day moving average on the daily chart (7540) again failed to attract much short-covering, thus, instead of rocketing up as they wanted, it was sold, NQ pullback down and again closed below the 50-day moving average on the daily chart.

 

Failure to trigger short-covering above the 50-dma will attract heavy selling. Already, on Tuesday NQ has dropped back down to key intraday support the 200-ma on the 5-minute chart. That 200-ma (7515) is now intraday line-in-the-sand for NQ on Wednesday.

Trading below the 200-ma (7515) on Wednesday is going to start to run-over some trailing stop-losses. If so the next support is at 7440, but a 1:1 downside target of wave a-b-c down from Tuesday swing high is not until 7420. However, if the market get bearish, the next major support, the 20-dma, is not until 7350.

 

They may try to engineer another rally above the 50-dma. If so, and if NQ should trade above 7515, we could see NQ rally to another higher-high on Wednesday.