NQ Guideline For Thursday

The Fed failed to deliver what the market expected on Wednesday, cutting 0.25% instead of 0.50% the market expected. As such, the market sold off hard, both the ES and NQ tested very important support level, which was aggressively bought by some people and bounced.

Key price level support for NQ going forward is 7800 and key price level support for ES is 2960

-- A break will confirm further downside move, NQ next lower target below 7800 is 7600.

-- As long as NQ remains above 7800 we could see NQ trading sideways or rally. Key resistance now is 7940.

NQ Guideline For Wednesday

NQ Daily Trend = UP - Overbought

NQ 60-minute Trend = DOWN

NQ 5-minute Trend = DOWN

 

NQ opened with a huge gap-down on Tuesday but was immediately rescued buy large buy programs from the Fed.

 

With Wednesday a key Fed decision day, widely expected to cut interest rate, thus a small rate cut or NO rate cut will be bearish. However, we can be sure that the Fed and the PPT will be very active in supporting the rally. Selling has to be so intense to overwhelm the Fed and PPT that are ready to aggressively buy the stock market.

Key Line-In-The-Sand for NQ on the 5-minute intraday chart will again be at 7995

-- Bullish above it

-- Bearish below it.

 

We should see the market starting to move away form current price zone after the FOMC decision announce on Wednesday.

NQ Guideline For Tuesday

NQ Daily Trend = UP, overbought

NQ 60-minute Trend = UP

NQ 5-minute Trend = UP

NQ opened near Friday's close but investors started selling right away downloading their long position ahead of the Fed policy announcement on Wednesday. NQ tanked hard, breaking below strong support down to lower support before they managed to rescue it. NQ then close above key inflection p[rice level, 7995-8000, setting up rally if it can stay above 7995 at the open on Tuesday

 

Longer term, regardless of what the Fed would do on Wednesday, going forward, the stock market is going to commence its long awaited bear market decline. The Fed has held the stock market up by continuing to keep interest rates so low, but they may no longer be able to keep the stock market up as the world economic contractions starts to severely affect the US.

 

The Fed cutting interest rates will shift international capital flow away from the US, thus will tank the US economy, the USD, the US real estate market and the US treasury and corporate bond market. It is difficult to predict whether the bear market decline will starts immediately after the FOMC announcement on Wednesday, or whether there will be several weeks delay, rally first to clean all the shorts, then starts the bear market decline. We will just have to watch the technical to tell us when to enter bearish positions.

 

Intraday support/resistance level for NQ on Tuesday will be 7995-8000.

-- If NQ should open and trade above 8000 on Tuesday morning we could see sharp rally as he Fed would continue to aggressively buy the market. Thus, as long as selling does not get

NQ Guideline For Monday

NQ Daily Chart = UP - in overbought zone

NQ 60-minute Trend = UP

NQ 5-minute Trend = UP but in pullback down mode at the end of the day on Friday

 

On Friday NQ opened above resistance, then rallied to the next higher resistance before trading sideways he rest of the day.

 

With traders and investors waiting for the FOMC announcement on Wednesday we could see NQ continuing to trade sideways. However, the Fed may decide to continue to push the stock market higher, thus be on the lookout for price levels.

On Monday key intraday 5-minute chart inflection price level will be 8030.

-- If NQ should trade above 8030 in the morning on Monday we could see NQ rallying to another higher-high before pulling back down.

-- Trading below 8030 on Monday is an indication NQ want to drop down to support, 7990, a strong support. If that 7990 support hold we could see NQ rallying back up to a new higher-high above Friday high before pulling back down.

-- 7990 is a very strong support level. Should it get violated we should see NQ dropping down to lower support, at 7945.

NQ Guideline For Friday

NQ Daily Trend = UP

NQ 60-minute Trend = UP

NQ 5-minute Trend = UP

 

On Thursday NQ pulled back down from overbought territory and then traded sideways all day, closing at the high of the day.

 

With many investors still waiting for the FOMC policy decision announcement next week we could see continual choppy action until the FOMC announcement next week.

 

Support going into Friday trading is 7920, resistance is 7980

-- NQ may stay inside the range between 7920 to 7980. As Friday tends to be choppy, a breakout of the range could get reversed back in.

 .

NQ Guideline For Thursday

NQ Daily Trend = Up - in overbought territory

NQ 60-minute trend = UP - in overbought territory

NQ 5-minute trend = UP - in extreme overbought territory7

 

The Fed buy programs finally get very aggressive in late afternoon, triggering a marge fas spike up into the close. Although the trend on all the three timeframe are still up we could see some pullbacks or consolidation before rallying back up again.

 

The FOMC will have their July meeting next week, with the market pricing in a 100% rate cut of half a percentage point. However, to show their independence, the FOMC may not cut interest rates. If so, we could see massive selling in the stock market. In anticipation of the heavy selling we could see continual massive buy programs in the stock market into next week FOMC decision on Wednesday

 

Going into Thursday trading session, key intraday inflection price level for NQ is 7985 - 7995 zone

-- As long as pullback down move does not break below 7985-8995 price zone we could see NQ rallying back up again.

-- Breaking below 7985-7995 price zone implies a larger pullback for NQ, the lower support is now at 7960. As long 7960 is not clearly violated we could see a bounce  back up again to 9085-7995 zone, an indication of a consolidation price pattern

 

Very important FOMC decision coming up next week. Whatever the decision may be, could trigger a sustained move, up or down, away from the current price level

NQ Guideline For Wednesday

NQ Daily Trend = UP

NQ 60-minute Trend is UP

NQ 5-minute Trend = Up - in overbought territory

 

On Tuesday NQ opened with a huge gap-up. Then after pulling back down to key intraday support, the Floor Traders Pivot & the 200-ma on the 5-minute chart, NQ reversed back up and rallied to a higher high above early morning high 

 

With NQ 5-minute chart in deep overbought territory as of Tuesday's close, we could see NQ pulling back down in the morning, and as long as supports is not violated on any decline, the rally should resume.

 

Key intraday inflection price level for NQ on Wednesday will be 7945.

-- Should NQ managed to stay above 7945 at the open on Wednesday we could see a continual rally.

-- Should NQ trade below 7945 we could see sideways action, with decline target down to its key support at 7920.

NQ Guideline For Tuesday

1. NQ Daily Trend = UP

2. NQ 60-minute Trend = DOWN below 7935, UP above 7935. As of Monday's close, the 60-minute trend was still down

3. NQ 5-minute Trend = UP

 

Market manipulators worked very hard on Sunday night to ensure that there is NO follow-through selling on Monday. The stock market opened with a gap-up, and then rallied.

 

Without enough buyers participating with the manipulators, rally quickly fizzled, NQ then traded sideways in a very narrow choppy range all day Monday.

 

For Tuesday trading session, NQ inflection price level will be 7910.

-- Above 7910 NQ is in an uptrend and bullish on the 5-minute chart. However, to get the rally going NQ would need to trade above 7935.

-- If NQ should trade below 7910 on Tuesday we could see some selling coming in. If so, support is again at 7840-7850 price zone.

NQ Guideline For Monday

-- Daily Trend is still UP, but in pullback-down mode from overbought condition.

-- The 60-minute trend is DOWN, and approaching oversold condition.

-- The 5-inute trend is down as long as it is below 7900.

 

A large reversal-down day for NQ on Friday, with the close at the day low, in deep oversold condition on the 5-minute chart. 

 

What usually happens following such a large trending down day, is an opening gap-down or morning trend down, then followed by a rally back up to balance price zone.

 

Balance price zone for NQ on Monday will be 7900. Supports are 7840, then 7800.

-- If NQ should trade above 7840 on Monday we could see NQ rally back up to the balance price zone, 7900, and implies sideways consolidation pattern

-- If NQ should trade below 7840 after the open on Monday we could NQ quickly dropping down to the next lower support, a very strong support, at 7800.

-- If 7800 support hold, we could see NQ rallying back up to 7840-7850, then 7900.

-- Should 7800 be clearly broken, we could see another large down day. Although it is not a highly likely event, anything is possible, so we must watch the levels.

NQ Guideline For Friday

Daily Trend = Up

60-min Trend = Neutral

5-minute Trend = UP

 

On Thursday NQ trend down to first support zone 7840-7850 zone before rallying abck up, breaking above resistance at the close.

 

With Friday tending to be range-bound sideways trading pattern, we could see a typical Friday pattern tomorrow.

 

Key intraday line-in-the-sand on Friday will be 7930

-- Bullish above it, and could rally to break above Monday high before pulling back down.

-- Bearish below 7930, first support is at 7900, then 7870 and 7845

 

NQ Guideline For Thursday

Daily Trend = UP

60-minute trend = DOWN

5-minute Trend = Down and Oversold

 

On Wednesday, as the 60-minute chart suggested, NQ opened below key line-in-the-sand thus took another leg down, although it traded sideways until the end of the day when NQ dumped.

 

NQ selling continued into the after-hours trading, setting up a potential large opening gap-down on Thursday, unless they can reversed it up before the open.  

 

Key resistance for NQ on Thursday will be 7920, key support is at 7894

-- Intra-day, NQ is bearish below 7920, and very bearish below 7894, with the next lower support at 7840-7850, and stronger support at 7800

-- NQ should turn bullish above 7920

 

Famous hedge fund manager Ray Dalio said on Wednesday, Buy gold, Sell stocks

NQ Guideline For Wednesday

NQ Daily Trend = UP = Overbought condition

NQ 60-minute Trend = UP

NQ 5-minute Trend = DOWN

 

On the 5-minute timeframe, on Tuesday, NQ trended down in the morning, then traded sideways in the afternoon, looks set to take another leg down on Wednesday. If so the next downside support is May swing high at 7895 area. For the next down leg to develop NQ should open and trade below 7960 on Wednesday

 

Should NQ, instead, opens above 7960, we could see another rally day, likely to be choppy.

 

NQ Guideline For Tuesday

Current NQ daily trend is UP but just starting to get into overbought condition.

Current NQ 60-minute trend is UP but now in overbought condition.

Current NQ 5-minute trend is UP as of the close on Monday, but was in overbought condition at the close on Monday.

 

A very narrow and choppy trading range for NQ on Monday simply because the market is topping but still getting manipulated upward by the Fed.

 

As such, and as long as it is till in an uptrend on all the three timeframes, the uptrend can continue and likely to continue in a very choppy narrow trading range as most traders are not participating in the rally, simply because the reward of going long the market is very low but the risk is very high.

 

For Tuesday, key intraday support for NQ going into Tuesday trading will be 7950.

-- And as long as NQ remains above 7950 on Tuesday the slow choppy narrow-range uptrend trading action should continue.

NQ Guideline For Tuesday

NQ daily trend is UP

NQ 60-minute trend is still up above 7800.

NQ 5-minute trend is down below 7850

 

On Monday NQ opened below the intraday line-in-the-sand 7850, as such took another leg down on the 60-min chart.

 

NQ then spent rest of the day trading just above the 60-minute 50-ma support, and closed at the 50-ma support, setting up either a rally up to 7850 on Tuesday or another leg down on the 60-min chart. The key is where NQ opens on Tuesday in relation to Tuesday L-I-S which will be 7800.

 

-- If NQ opens above 7800 we could see a quick rally up to 7850, which should act as strong resistance.

-- If NQ opens and trade below 7800 we could see a sharp selling with the next support at 7720

NQ Guideline For Monday

For Monday

Current NQ daily trend = UP

Current NQ 60-minute trend = UP

Current 5-minute trend could go either way, up or down.

 

On Friday NQ opened below first support 7850, then dropping down to 2nd support 7800 before rallying back up the rest of the day, closing right at line-in-the-sand (7850) for Monday.

 

On the 60-min chart, NQ looks set for another down-leg on Monday, with next down-leg target at 7770.

 

However, where NQ opens and trade soon after in relation to the 7850 LIS on Monday will determine if the next down-leg is in fact coming, or if 7850 should hold and that the next leg up is coming on Monday.

 

Thus on the 5-minute chart, intraday L-I-S for NQ on Monday will be 7850, bullish above, bearish below.

NQ Guideline For Friday

NQ daily Trend = UP

NQ 60-minute Trend = UP

With most traders still out of the office on Friday, and the Fed likely to continue to trigger buy programs to keep the uptrend going, the stock market may just continue to go up.

 

However, as Friday tends to be a sideways consolidation type of day, NQ may just trade sideways in a trading range.

 

Intraday support on Friday will be at 7850 (prior swing high) and a stronger support at 7800 (also prior swing high). Without any unexpected market-moving news either one of the above support should hold any decline.

 

NQ Guideline For Wednesday

A narrow range sideways consolidation day for NQ on Tuesday as most traders are out of the office for the 4th of July holiday, and also the lack of buyers as the world economy continues to slow down, and many are already in recession.

With Monday and Tuesday consolidation days, and with the Fed (doing it for Trump) wanting to see a big rally ahead of the 4th of July holidays, we could see a large up trending day on Wednesday, as long as it stays above key intraday support, which is at 7770

 

Without many buyers, we could also see another day of choppy narrow-range consolidation day.

 

NQ Guideline For Tuesday

Massive buy programs triggered during the low volume overnight trading following the end of G20 meeting in Japan,  designed to cause a huge opening gap-up hoping to trigger a massive short-covering rally on Monday, failed miserably. Instead of triggering a huge short-covering up-day on Monday, NQ opened and sold off all day, a very negative sign.

 

The Fed is likely to try to buy the stock market again on Tuesday. Key intraday price level will be 7800, bullish bias above it and bearish bias below it with key support at 7720.