NQ Guideline For Friday

Another huge down day in the equity market on Thursday. Unless global central banks intervene aggressively before and after the stock market opens on Friday we can expect the stock market to crash as margin selling gets triggered come Friday opens

 

NQ is approaching its 200-day moving average support, but as we can see from the Dow and the S&P 500, their 200-dma did not pause the drops, so we can expect NQ 200-dma to get sliced.

 

The equity futures market continued to crash in globex trading overnight Thursday night.

NQ Guideline For Thursday

NQ traded sideways onside prior day range on Wednesday setting up another large range down day on Thursday.

 

Unless central banks came in aggressively to support the stock market before the market open on Thursday we could see a big crash on Thursday.

The Dow has broken below its key 200-daymoving average on Wednesday with the S&P 500 not far above its 200-dma.

 

We could see the S&P 500 came down to its 200-dma on Thursday and the NQ coming down as well.

 

We speed of the current decline does not leave traders and investors with any graceful exit opportunity, with many account that would get liquidated, selling beget selling.

 

Key intraday price level for NHQ on Thursday will be at 8900.

-- Below 8900 we could see margin selling, next NQ support is its 200-dma, now at 8200, but force selling could cause the market to slice through it like hot knife through butter.

NQ Guideline For Wednesday

Another very large down day for NQ on Tuesday as it broke below its 50-day moving average on the daily chart.

 

The next strong support is the 200-day moving average on the daily chart, now at 8190, at about 600 points lower.

Key line-in-the-sand tomorrow is 8940

-- Above 8940 we could see NQ rallying up to 9040, or all the way to 9100.

-- Bearish below 8940, and the next major support is at 8190.

 

NQ Guideline For Tuesday

A huge gap-down open in the equity market on Monday, then traded sideways all day. If the consolidation has ended we could see a resumption of the decline on Tuesday.

 

However, because Monday is the third huge consecutive down day we likely see more consolidation on Tuesday. The key is where NQ opens in relation to its key intraday inflection price zone.

 

For NQ on Tuesday, key inflection price zone is at 9100.

-- Trading above 9100 on Tuesday is an indication NQ is still in a consolidation mode, with resistance at 9200 then 9270-9280, then 9400 which is a very strong resistance.

-- Should NQ trades below 9100 we could see another strong selling with not much support until 8100

 

Gold price spiked again on Monday

 

NQ Guideline For Monday

NQ sold off hard on Friday and has continues to sell-off in overnight trading on Sunday night, already down over 200 points from Friday close. Where it will eventually opens on Monday will be key to what the stock market is going to do.

Resistance/Support (inflection zone) is 9400 for Monday, bullish above it, bearish below it.

Support comes in between 9150 to 7275, (9275, 9225, 9150)

NQ Trade Guideline For Friday

Even with massive money printing by the Fed the stock market up-trending move may have finally break on Thursday. Nasdaq sold off hard on no news, a bearish sign. The managed to rescue the market today, but the question is, for how much longer.

NQ sold off hard in the morning on Thursday, over 200 points down from previous day close. Although they managed to push it back up half way, NQ has continued to sold off in overnight trading, setting up a gap-down open on Friday.

 

Although Friday tends to be  choppy sideways day, if NQ break below Thursday swing low, and then unable to rally back up, we could see massive liquidation as trailing stop-losses gets run-over, and can cause a flash-crash.

 

Key inflection price level for NQ on Friday will be at 9600.

-- Bearish below 9600 with key support at 9550. A sustained break below 9550 could trigger massive selling. -- If NQ can stay above 9550 we could see the usual sideways trading pattern on Friday.

-- Trading above 9600 could force the shorts to cover. If so, the next resistance is at 9670

NQ Guideline For Thursday

NQ opened with a huge gap-up on Wednesday. After rallying in the morning NQ then spend the rest of the afternoon trading sideways, setting up another rally leg on Tuesday morning or pullback down to lower level in the morning before rallying back up again.

Key price level for NQ in the morning is at 9735.
-- NQ will have bullish bias in the morning if the open is above 9735.with first upside target above Wednesday high.
-- Opening and trading below 9735 implies NQ may need to pullback down to lower level before rallying back up again. If so, the first support is at 9720. Should that break, the next lower support is at 9655-9665

NQ Guideline For Wednesday

After trading sideways mostly below broken key support-turned resistance at 9620 NQ finally broken clearly above 9620 which now will serve as key support for trading on Wednesday.

 

NQ has traded higher during globex trading session Tuesday night. If the open with a big gap above Tuesday high we could see a pullback down to retest Tuesday high before going back up and trend up..

 

If it break-back below Tuesday high on a re-test, it implies a movement down to 9620 key inflection price level

 

If prior day high held as support on a re-test we should see a trending up day on Wednesday

NQ Guideline For Tuesday

The equity market was closed on Monday but last week Friday the market traded sideways as usual.

 

The Futures market is already down in overnight trading on Monday night. Unless the Fed inject massive liquidity overnight the market is set to open lower on Tuesday.

 

Key inflection price level for NQ on Monday is 9620.

-- Bearish below it with supports at 9600 then 9550, then 9450. Supports once broken will b3ecome resistance. NQ Futures has traded down below 9600 support overnight. If the open is below 9600, that level would become resistance.

-- Bullish above 8620.

NQ Guideline For Friday

Massive liquidity injection by the Fed continued to push the stock market higher on Thursday and we should continue to see higher high on Friday.

 

The stock market tends to trade sideways on Friday, with massive liquidity injection, we should see NQ making another higher high then reverses back down towards support.

 

Key inflection price level for NQ on Friday will be at 9620.

-- Trading above 9620 in the morning implies a higher high in the morning then reverse back down to support, 9620 then 9600

-- Trading below 9620 in the morning implies a pullback down to 9600 support before trending back up to another higher high above Thursday swing high.

 

If 9600 support should break we should see more selling, with the next lower support at 9450.

NQ Guideline For Thursday

Another up day for NQ on Wednesday courtesy of the Fed liquidity injection through the repo market. The Fed needs to continue to pump larger and larger amount to liquidity into the system to avoid catastrophic collapse. However, it cannot continue forever, it will end badly. For now, the equity market continues to march higher, almost on a daily basis.

 

Key inflection price level for NQ on Thursday will be at 9605.

-- Bullish above it, with the next upside target at above Wednesday swing high.

-- Trading below it could trigger some short term intraday selling programs, first support is at 9560.

NQ Guideline For Wednesday

The equity market was engineered to open higher on Tuesday ahead of the Fed Chairman testimony before the house banking committee.

However, the morning uptrend was reversed by heavy selling, and close near the low of the day.For NQ the day low was at key intraday support level. the 200-moving average on the 5-minute chart.

 

For Wednesday the key inflection price level is at 9560, but we could see sideways consolidation pattern on Wednesday, with NQ trading between supports 9480 and 9450, and Resistance at 9560 and 9600

NQ Guideline For Tuesday

NQ opened with a gap-down on Monday. For some reason the Fed buy programs was triggered immediately and continued into the close. The buy programs continued into the globex overnight trading which is likely to cause a huge gap-up open on Tuesday.

 

Without a huge liquidity injection overnight we could see a gap-up that get sold. On a huge gap-up open, the key price level to watch after the open is the opening price.

 

On a huger gap-up open, key price level will be the opening price.

-- If NQ opens with a huge gap-up but failed to stay above the opening price we would likely see a gap-reversal, with first downside target at 9480.

-- If it can hold above the opening price we could see another up-trending day, but the probability of another trending up day is very low on Tuesday.

 

Supports are 9480 and 0450

NQ Guideline For Monday

As expected, the market traded sideways on Friday, with NQ dropping down to support soon after the open, then rallied to higher high then pulling back down into the close, a typical Friday pattern.

 

The closing price on Friday was just below key inflection price level for Monday, 9420.

-- If NQ should open above 9420, we could see NQ rallying up to another higher high above Friday high, then reverse back down to 9420, or it can break above Friday swing high and then stays above Friday high and trend up all day long into the close.

-- If the open is below 9420 we could see NQ pulling back to lower support levels before bouncing back up into the close. Lower supports are 9370 then 9330.

 

However, should there be some negative news overnight before the open, lower support level, a strong support level will be 9270-9280 zone. But it will takes a very negative new, such as Corona Virus outbreak news, to trigger selling to drop it down to 9270-9280 support.

New about Corona Virus outbreaks is still the wild card that can trigger heavy selling.

NQ Guideline For Friday

Massive central banks liquidity injection directed to the equity market continued to cause stock market melt up on Thursday. However, the market makers may want to take the market down due to options expiration on Friday. As such we could see the market pulling back down on Friday.

 

Key inflection price level for NQ on Friday will be 9440.

-- Trading below 9440 at the open on Friday is an indication NQ is going to trade lower down to the next lower support, 9400, then 9370.

-- Opening above 9440 on Friday implies a rally to higher high before reversing back down towards supports 9400

 

On Friday the market tends to trade in a sideways trading range pattern

NQ Guideline For Thursday

The Fed and other major global central banks continue to pump massive liquidity via conventional QE and via short term repo agreement into the financial system in order to push the stock market up in order to avoid catastrophic financial collapse. The excuse used by the central banks is the Corona Virus outbreak

NQ opened wit a gap-up then reversed down immediately before spending the rest of the day trading sideways setting potential next leg down before rallying back up again.

 

Key inflection price level for NQ on Thursday morning will be 9350

-- If the open is below 9350 on Thursday morning we could see another the first swing will be a down-leg down to the next support, 9280 before going back up.

-- If the open is above 9350 we could see another higher high above Wednesday high before pulling back down to support.

NQ Guideline For Wednesday

Non-stop buy program on Monday night ahead of President Trump State of the Union address on Tuesday evening cause a huge gap-up opening on Tuesday morning. The buy programs continued all day on Tuesday with a close at the high of the day.

The Fed and the proxy buyers are going to continue to buy the stock market on Wednesday. However, with a huge up-day on Tuesday the market may have to consolidate Tuesday's huge rally.

 

Key inflection price level for NQ on Tuesday is 9340.

-- If at the open NQ still trades above 9340 we could see NQ rally to a new high before pulling back down.

-- Opening and trading below 9340 at the open implies NQ is going to pullback down first before rallying back up to make an higher high.

NQ Guideline For Tuesday

The Fed buy programs was immediately triggered as the market opened for trading on Tuesday. The buy program lasted about one hour. Strong selling pressure throughout the day kept the buy programs in check.

 

However, buy programs continued after regular market is closed with NQ up over sixty points by midnight Monday night. If they can hold the market from selling overnight we can see continual rally on Tuesday at least in the morning.

 

Key inflection price level on Tuesday will be at 9125

-- Opening above 9125 will keep the intraday algos on the buy mode, if so NQ is likely to rally with the next upside target is a break above Monday swing high

-- If the open is below 9125 we could see some selling, supports are 9080, 9040, then 9010

NQ Guideline For Monday

On Friday the equity market and NQ opened just below the massively manipulated Thursday close when a huge buy programs triggered by the Fed proxy buyer just after the close of the cash market on Thursday, designed to keep the market in positive momentum.

 

However, even with Friday's open just slightly below the Thursday's close, the market sold off very hard on Friday. all day into the close, with NQ dropping over 200 points from Thursday close, in a 5-wave decline and at the end of the day on Friday looks ready to retrace the decline or reversed back up again on Monday.

 

Key price level for NQ on Monday will be 9020.

-- If NQ can trade above 9020 at the open on Monday, it is an indication NQ is on its way up to retrace percentage of the entire decline from Thursday swing high to Friday swing low. 

-- If NQ is going to sell-off again on Monday, the morning rally should stop below 9100 area, with 9090 the location of the key 200-ma resistance on the 5-minute chart, and 9100 the 50% Fibonacci retracement of the entire decline, and the upper keltner channel resistance on the 5-minute chart.

-- However, should the Fed buyers is able to push above 9100, the intraday algos will reverse from selling to buying, as such could cause NQ to rally further up.

-- Should NQ trade back below 9020 there is a possibility the selling that started on Friday should continue.

 

However, with a huger down day on Friday we could also see the market trades sideways below 9100 on Monday, which will setup Tuesday selling. 

 

Corona Virus outbreaks will continue to spook global markets