NQ Guideline For Tuesday

Another pullback down day in the stock market on Monday following a down day on Friday. The Fed and the PPT is going to try to hold the stock market up into the year end to makes thing looks great. Whether or not they can hold it up is another question.

 

Key intraday inflection price level for NQ on Tuesday will be 7730

-- Bullish above it, first resistance is at 8770

-- Bearish below it, first support is at Monday low

 

With most traders out the market on New Years Eve, we can expect a choppy market on Tuesday

NQ Guideline For Monday

NQ pullback down on Friday after opening with a gap-up, the selling pressure was likely too much for the Fed to hold the market up.

 

The Fed/PPT is going o hold the market up for the year end, as such we can see the market rallying back up again on Monday

 

Key support for NQ on Monday will be at 8770.

-- As long as it can stay above 8770 we could see NQ rallying back up to test Friday's high.

-- Trading below Friday low, 8770 could trigger some sharp selling as short te4m algo go short the market.

NQ Guideline For Friday

The stock market continue to melt up as the Fed continued to inject massive amount of liquidity into the financial system through the repo market.

Their action should continue on Friday as the stock market enter a capitulation phase, which once ended usually reverses violently, in this case, the stock market will reverse violently back down.

Key support on Friday will be 8745. However, it may not matter as NQ has now traded over twenty points above Thursday's closing price.

NQ Guideline For Thursday

The Fed continued to pump massive liquidity into the financial system on a daily basis, from 75billion per day to now 200 billion per day, in order to keep the stock and bond market up.

 

They are certain to continue pumping liquidity into the system until everything blows up to keep the stock and bond market up. As such we should continue to see the stock market going up.

 

Intraday support on Thursday will be 8710. NQ should remain bullish above it.

NQ Guideline For Monday (March contract)

The Fed continued to pump massive liquidity into the financial system every night, starting with 75 billion dollars every night in September, now has to up the amount to 200 billion every night just to keep the financial system going and just to continue to support the stock market, keeping it up. We can see the melt-up of the stock market. The Fed and the PPT is likely to try to hold the stock market up for the Christmas holidays

This type of manipulated market will end soon, it could end before the end of the year, or soon in the new year. the exact time no one could know, it is now a matter of psychology, it is when the confidence is lost, leading to instant collapse/crash of the stock market and the bond market.

 

With most traders out of the market for the Christmas holidays, and the Fed actively supporting the stock market, I am not expecting a big swing until after Christmas, The market may just continue to trade sideways in a very narrow trading range.

 

Key intraday inflection level for NQ on Tuesday will be 8710 (March contract. Support is 8670

NQ Guideline For Friday

Another narrow range trading in the stock market on Thursday. Ahead of the Christmas holidays the Fed/PPR is going to support the stock market up to Christmas to make it appears everything is ok.

 

After Christmas, we could see the repo problem could get more severe and crash the stock market and the bond market all at the same time.

 

For Friday, basis December contract, key inflection price for NQ will be 8630.

-- Above 8630 NQ is going up.

-- Below 8630 we could see a decline down towards key intraday support at 8600.

NQ Guideline For Thursday

Another narrow range sideways trading on Wednesday, with key intraday support at 8585 on the December contract.

 

If NQ can stay above 8585 on Thursday we could see another higher high, but trading below 8585 could trigger some selling

NQ Guideline For Wednesday

NQ traded in a very narrow trading range on Tuesday as the Fed/PPT continued to try to hold the market up through the Christmas holidays for Trump. If successful we could see the stock market stayed up at or near the high for the Christmas holiday.

 

Key support for NQ going into Wednesday trading will be 8560 *December contract price level.

-- There is not much selling if NQ can stay above 8560. As such, NQ may continue to trade sideways or rally up to another higher high.

-- Trading below 8650 could trigger some selling, but the Fed/PP{T should continue to come to he rescue.

NQ Guideline For Tuesday (level on December contract)

The stock market was engineered to open higher on Monday and was continue to get supported all day. NQ is now just below trendline resistance on the daily chart, now around 8610-8620, thus may start to encounter some heavy selling.

 

Key inflection price level for NQ on Tuesday will be at 8580.

-- Above 8580 we should see more rally, next resistance zone is 8610-8620 area.

-- Trading below 8580 implies a potential pullback down movement, with key support at 8520

NQ Guidelline For Monday

Ahead of Trump impeachment vote and ahead of the trade agreement between Trump and China, the PPT was extremely active in supporting the stock market, and pushing it up, but without buyers and with the market deeply overbought on the daily timeframe, every rally has been used as an excuse to short the market.

 

For Monday, key intraday price level for NQ will be at 8495.

-- Trading above 8495 after the open implies NQ is going to get push higher first.

-- Trading below 8495 is an indication NQ is going to go down to its 200-ma on the 5-minute chart, now at 8460. A break should tank the market. No break should rally NQ back up.

NQ Guideline For Friday

Ahead of President Trump impeachment vote and the China trade deal, the PPT has gone nuts with buy programs, which is expected to continue on Friday.

Key support on Friday for NQ will be 8410.

-- As long as NQ remains above 8410 the buy programs should continue to be in control.

-- NQ will nerd to break below the key 20-dm,a on the daily chart, now sits at 8350 for selling to get out of control.

 

Keep in mind that the market tends to trade sideways on Friday

NQ Guideline For Thursday (December Contract)

The market traded sideways ahead of the FOMC meeting announce on Wednesday. Now that the Fed is out of the way until next year the market can now starts to move out of the sideways consolidation range.

Key price level, now support, for NQ going forward will be the 20-dma on the daily chart, now sitting at 8335 as of Wednesday closing price, NQ December contract price level.

 

On the intraday timeframe, key price level for Thursday will be 8380

-- Trading above 8389 will be bullish.

-- Bearish below 8380, however, NQ would need to clearly break below 8335 to trigger heavy algorithm selling.

NQ Guideline For Wednesday

NQ traded sideways on Tuesday still hovering about key 20-dma, 8330, on the daily chart, now still acting as key support.

On Wednesday the 20-dma on the daily timeframe will serve as key support. A break below could trigger heavy selling, with he next major downside target remaining at 8100.

On the intraday basis, key inflection price level for NQ will be at 8380, bullish above it, bearish below it.

NQ Trading Guideline For Tuesday

On Monday after a brief morning rally soon after the open NQ reversed and drifted down eventually broken below the key 200-ma on the 5-minute chart.

 

On the 5-minute timeframe, NQ was in deep oversold as of the close on Monday, setting up a possible short-term rally at the open on Tuesday but then the daily chart traders should soon come back to sell, with key daily chart support at the 20-dma 8330.

 

A break below 8330 is bearish on the daily timeframe and could attract heavy selling, with the next lower target at 8100. However there are several supports that could temporarily stop the decline.

Trading Guideline For NQ on Monday

A huger gap-up open for NQ on Friday, but then it went flat for the rest of the day. The market may want to resume back down with or without morning rally.

 

Key inflection price level for Monday trading in NQ will be 8400.

-- Trading below 8400 implies NQ is going to trade down to lower levels, key support downside target is 8330 - 8340 area where it may bounce back up from those support zone. Should that support zone clearly break to the downside, we could see an acceleration of the downside move. with the next support zone at 8300-8320.

-- Trading above 8400 after the open implies another rally to retest November high.

 

NQ Guideline For Friday

NQ traded sideways for the second day in a row on Thursday, still digesting the big downmove from Monday and Tuesday large selloff days.

With Friday tendency to be choppy, we could see another choppy consolidation day on Friday, setting up a large down day on Monday.

Key support for NQ on Friday will be 8290.

-- Staying above 8290 on Friday implies choppy sideways or a rally.

-- Trading below 8290 could trigger some selling. However, to get a trending move on Friday the markets needs some unexpected market moving news.

NQ Guideline For Thursday

As expected the stock market continued to bounce from extreme short term oversold condition, which usually last between one to three days. As such, we could see resumption of the down move on Thursday.

 

Key short term inflection price level for NQ on Thursday will be 8280

-- NQ may continue to be choppy above it with resistances at around 8365.

-- Bearish below it, with key support at 8250. A clear and sustained break below 8250 could trigger heavy selling. Strong support is 8050 price zone.

NQ Guideline For Wednesday

On Tuesday, NQ opened with a huge gap-down below key 20-dma on the daily chart, 8300, but very quickly bounce off prior-high turned-support at 8165 area.

 

The market is now in extreme oversold on the short term timeframe, and may need to consolidate for a day or two before resuming back down to its next major support, the 50-dma on the daily chart, now at 8050.

 

Key short term intraday price level for NQ on Wednesday will be at 8220

-- Trading above 8220 on Wednesday will keep selling under control until it reaches resistance at 8300.

-- Trading back below 8220 is likely to trigger selling, but with stop-losses congregating below Tuesday swing low, NQ would need a sustained break below Tuesday swing low to trigger another round of algos selling. If so the next support is at 8050, although it is likely to get penetrated on an intraday basis.

NQ Guideline For Tuesday

The market sold off hard on Monday from overbought situation, the trigger was Trump trade war rhetoric.

NQ morning selloff over-shot the 20-dma to the downside on the daily chart on Monday but it closed just above the 20-dma on Monday, making the 20-dma on the daily chart, now at around 8300, a key line-in-the-sand on Tuesday and going forward.

Key intraday inflection price level for NQ on Tuesday will be 8320
-- Above 8320 we could see short-covering, with first resistance at 8360.
-- Trading below 8320 is bearish, but key support is now at 8300.

NQ Guideline For Monday

The market continued to manipulated upward for the thanksgiving weekend. The market is now in overbought zone on the daily timeframe, as such we can expect to see larger pullback decline this coming week.

 

Key line-in-the-sand for NQ for Monday's trading is 8430

-- If trading is above 8430, we could see the market going higher, with two upside targets at 8480 and 8520.

-- Trading below 8430 could cause more selling as shorter timeframe algos triggers selling, lower targets are at 8380, then 8330, but there is a very strong support coming in from November 19th swing high that could cause a bounce.