NQ Guideline For Wednesday

The market rallied on Tuesday ahead of the long 4th of July weekend, likely being manufactured to rally to create a false sense that everything is ok.

However, it does seems clear that trillions and trillions of non-stop money printing seems by the Fed does not seems to have much impact any longer. Deflation is starting to overwhelm the Fed money creation. Sooner rather than later the market will start to go down, unless world central bank opt to hyper-inflate the paper currency system.

 

Tuesday was a trending day. It is usually followed by a choppy sideways day or a reversal day. As such we could see either a choppy day or a reversal day on Wednesday, a reversal from up to down.

 

Key Line-in-the-Sand on Wednesday will be 10,100, bullish bias above, bearish bias below

NQ Guideline For Tuesday

On Monday, after dropping down to support NQ reversed sharply reversed and then rallied all day into the close, with a very bullish close.

 

For Tuesday's trading, as long as NQ opens and remains above key line-in-the-sand on Tuesday we should get a rally day with upside targets at 10,100 or so

 

Falling back below the line-in-the-sand implies a change in biases from bullish to bearish, downside target is Monday low

 

Key line-in-the-sand for NQ on Tuesday will be at 9940

NQ Guideline For Monday

A large down day for NQ on Friday, with the open near the high of the day and the close near the low, a bearish close, the fourth pullback down day in a row, overbalancing all previous pullback time, a clear indications the uptrend may have ended.If so, we should see several more down days before it rally back up.

Key intraday line-in-the-sand for tomorrow will be at 9900.

-- Below 9900 we should see NQ making another lower low. Next lower support is 9800-9820. A sustained break below 9800 could cause a cascade of selling as trailing stop-losses gets run-over.

-- If NQ should trade back above 9900 we could see some rally back to 9970. Should NQ rally continues higher, the next higher resistance is at 10040.

NQ Guideline For Friday

NQ was engineered to break down below prior day low before reversing it back up, a false-break reversal type of day.

 

This type of day is usually followed by a trending up day. However, because Friday tend to be a choppy day it is possible NQ may just trade sideways on Friday.

 

Key line-in-the-sand for NQ on Friday will again be 10,040.

-- Resistance is 1010-10140

-- Support is 9940

.

NQ Guideline For Thursday

On Wednesday NQ continued the Tuesday afternoon selling, tanking hard, ended with a large down day on Wednesday.

 

After a sharp and large downtrend in the morning NQ spent lunch and afternoon hours trading sideways in a consolidation range, with 10,040 as resistance and 9040 as support.

 

On Thursday NQ either:

1. Break above consolidation high 10,040 and spike up to the next higher resistance at 10,130 before dropping back down, or

2. Drop below support 9940, and tank to the next support level,9830, or

3. Unlikely but possible, NQ remains inside the trading range between 9940 - 10040.

 

Key line-in-the-sand for NQ on Thursday is 10,040.

 

NQ Guideline For Wednesday

NQ opened with a gap-up and in breakout mode, and rally until the afternoon when it eventually reverse very sharply back down.

 

The afternoon decline should continue into tomorrow morning to retest the breakout level, 10110-10145 zone. As long as 10110-10145 now acting as support hold on any decline to it, the rally should resume.to higher high.

 

A break below 10110 is very bearish as it could lead to heavy selling, tanking NQ down to 10020 or all the ways down to 9940

NQ Guideline For Tuesday

The market rallied on Monday with NQ being the most bullish among the major indices, and the Dow and Russell 2000 lagging behind..

 

Key Line-in-the-Sand for NQ on Tuesday will be at 10080.

-- As long as NQ remains above 10080 we could see another higher high above the recent high of June the 10th.

-- If NQ should starts to trade below 10080 we could see a quick drop down to 200-ma on the 5-minute chart.

 

The 200-ma is usually very a very strong support on the decline down to it. However should that break clearly we could see a sharp selling on a pullback up to it.

Market Commentaries For Monday

The stock market opened with a huge gap-up on Friday. After trading sideways for a short period of time after the open selling started to overwhelmed buying. The stock market started to tank hard. On the daily chart, the set-up is bearish.

 

The Dow Future, the YM is showing lower highs.

 

On an intraday basis the stock market is in sell mode. Thus on Monday, to change the bias from bearish to bullish, the market has to re-break back above its intraday line-in-the-sand, which, as of the close on Friday would be resistance level.

 

For NQ its L-I-S for Monday will be at 10,000.

-- NQ will remained in bearish mode below 10,000, with the next lower support at 9700. A break below 9700 is very bearish.

-- If the Fed can push NQ back above 10,000 on Monday we could see some shorts starting to cover, and thus can cause a short-covering rally.

NQ Guideline For Friday

The stock market traded sideways in a narrow trading range for the second day in a row on Thursday thus setting up a large trending move out of the range. With Friday tending to be a choppy sideways type of day it is likely we may not see a trending move until next weeks.

 

Key line-in-the-sand for NQ on Friday will ne 9990

-- Trading above 9990 is bullish with resistance at 9920. A sustained break above 9920 could lead to a sharp spikes as stop-loss get run-over. However, should NQ breakout and then reverse we could see a very sharp reversal.

-- Trading below 9990 is bearish with key support at 9940. A sustained break below 9940 could trigger selling to tank NQ down. A false-breakout leads to fast reversal.

NQ Guideline For Thursday

After two huge up days NQ traded in a choppy sideways trading pattern on Wednesday. On the daily chart, NQ is spotting a narrow range doji candle day, a perfect setup for a large trending day on Thursday, the direction of the trend would depends on where it trades in relation to the key intraday timeframe.

 

Key intraday timeframe on Thursday will be its ma on the 5-minute chart, which at the close of trading on Wednesday was at 9940. The trading action on Wednesday is indicating a down day on Thursday

-- However, as long as NQ remains above 9940 we could see a rally.

-- Trading below 9940 is an indication the trend i9s going to be down, with the next support at 9680

NQ Guideline For Wednesday

The stock market had a rally on Tuesday, with a huge gap-up open, and a second rally day following a sharp 2-days pullback down move last week.

 

Tomorrow will be a key day in that we have a fifty percent chance of a rally day and a 50 percent chance of a sell-off day.

 

Key inflection price level for NQ on Wednesday will be at 9950, bullish above it and bearish below it.

-- Key support is 9800. A clear break below it could cause a liquidation decline.

-- Key resistance is last week Wednesday swing high, a break could trigger some short-covering spikes.

NQ Guideline For Tuesday

Monday was a reversal day with a false-break to the downside immediately after the open, then reversed back up and rallied all day. As such many traders were trapped with their short position.

Thus we could see a gap-up open on Tuesday with a short-covering rally in the morning before reversing back down in the afternoon session.

 

Key intraday support for NQ on Tuesday will be at 9680.

-- As long as NQ is above 9680 on Tuesday morning NQ will remain in bullish mode.

-- Break-back below 9680 will turn NQ into a bearish mode.

NQ Guideline For Monday

On Friday the stock market consolidated the huge Thursday's sell-off. However, on Monday the selling should continue.

Key intraday line-in-the-sand for NQ on Monday will be at 9575

-- If NQ should stay below 9575 we could see another huge sell-off day on Monday, potential downside target is the 50-day moving average on the daily chart, now at 9075. However, there is support from previous swing high at 9350 which may or may not provide support.

-- Staying above 9575 should temporarily keep selling from overpowering the buying. However, NQ would need to break back above 9737 to go into its bullish mode.

 

NQ Guideline For Friday

A huge sell-off in the equity market on Thursday with NQ dropping down over 450 points from Wednesday high, dropping back below February high, the breakout high, a very unusual event.

 

Key price level for Friday in NQ will be at Thursday low, as key support level. As long as NQ does not trade back below Thursday low we could see either a huge rally or just sideways consolidation.

 

Key inflection price for NQ on Friday will be at 9700.

-- Trading above 9700 we could see NQ rallying back up to 9800 o 9850 resistance zone.

-- Trading below 9700 is an indication NQ may retest Thursday low or down to the 20-moving average n the daily chart, 9575.

-- A sustained break below 9575 is very bearish, next lower target is 8975.

NQ Guideline For Thursday

As expected the short-squeeze rally in NQ continued on Wednesday. However, the Fed induced rally seems to be losing steam, with NQ daily candle spotting almost a gravestone doji candle, a bearish signal which could lead to a decline to retest the breakout level, 9735.

As such, we look to the intraday support to give us a hint.as to whether or not the pullback to retest the breakout level is forthcoming.

 

Key intraday inflection price level for NQ on Thursday is at 10080

-- NQ is still bullish above 10080, with the next upside target of a higher high above Wednesday high.

-- Bearish below 100080, with key support at the 200-ma on the 5-minute chart.

 

Should NQ clearly breaks below the 200-ma on the 5-minute chart we could see a quick drop down towards 9735 breakout level. There will be a lot of buyers at 9735-9800 price zone. A strong support price zone that should not break, but anything is possible.

NQ Guideline For Wednesday

Short-squeeze in NQ continue on Tuesday. NQ rallied most of the day with a small end of day profit-taking decline near and into the close.

 

Whether or not NQ would need a pullback on Wednesday will depend of where it opens in relation to its line-in-the-sand on Wednesday.

 

Line-in-the-sand for NQ on Wednesday will be 9970.

-- Rally is going to continue above 9970.

-- NQ is in pullback mode below 9970.

 

Wednesday is FOMC day

 

NQ Guideline For Tuesday

After trading down to support on Monday the rally continued on Monday. With NQ now in breakout mode above February swing high the rally can continue for a while.

 

Breaking back below Friday swing low, 9653 could trigger a cascade of selling from trailing stop-loss congregative below the breakout day low.

Key intraday inflection price level for NQ on Tuesday will be at 9840.

-- If NQ pullback down move breaks below 9840 we could see a further decline down to the next lower support, 9800.

-- If NQ stays above 9840 we would see NQ short-covering rally to continue to higher high.

NQ Guideline For Monday (June Contract)

The stock market has a major rally on Friday. NQ opened and rally non-stop on Friday breaking out above February swing high and closed above February swing, making Friday a key breakout day.

Thus going forward, Friday June 05 daily candle is now key day, a key breakout day.

-- With stop-losses now congregating below Friday June 05 swing low, the rally is going to continue as long as NQ continues to trade above June 05 low. If enough shorts decides to cover as NQ continues to push higher, we could see a major spike rally above February swing high.

-- B break-back below Friday low will trigger a cascade of stop-and-reverse selling that can tank NQ very hard.

 

On intraday timeframe,  key intraday inflection price level is at 9820.

-- NQ is in pullback down mode below 9820, with support at about 9735

-- Bullish above 0820, but NQ is in wave 5 on the 5-minute timeframe and may be ready to pullback down at anytime.

NQ Guideline For Friday

After making a new higher high soon after the open on Thursday NQ reversed back down  and trend down most of the day, with a small late day rally into the close.

 

On Friday we could either see a continual rally or sell-off back down to support. And it will depend on where it opens on Friday.

 

Key intraday inflection price on Friday will be at around 9640, bullish above it, bearish below it.

NQ Guideline For Thursday

Another choppy up-day for NQ and also the overall equity market on Wednesday, with NQ ending up as a doji on the daily candle chart, with the high of the day just below the record high from February.

 

NQ may pullback and consolidate before break above the February high, or break above it right away. A consolidation below the high before a break could cause a massive spike on a break as algos exit and reverse long in mass.

 

A break above February swing high  without first a consolidation below the February high, could cause a false-breakout which then would lead to a fast reversal down.. Either way NQ goes, we could see some big moves coming up soon.

 

Intraday inflection price level for NQ on Thursday will be at 9685.

-- Resistance is at February high

-- Support is at 9610

 

On a break above February swing high, this illustrations will provide a great guide on how to trade potential false-breakout, swing high labeled a is February swing high.

NQ Guideline for Wednesday

After a brief early morning pullback move down to support, NQ rallied to another higher high and then closed near the high at the end of the day.

 

With the end of day close right in overbought zone of the 5-minute chart, we could see a potential choppy action in the morning. However if NQ opens with a huge gap-up and triggers short-covering immediately, we could see NQ trending right away to another new high.

 

Key intraday line-in-the-sand for NQ on Wednesday is at 9600.

-- There are two supports on any pullback on Wednesday. First support is 9600, then the second support is 9560. NQ would need to break below 9600 to change the intraday bias from bullish to bearish.

-- If the open is above Tuesday swing high we could see a trending up day on Wednesday.

 

With so much civil unrest in the US, the Fed and the PPT is going to be aggressive in supporting the market.

NQ Guideline for Tuesday

A narrow-range day for NQ on Monday. NQ opened with a gap-down but the Fed/PPT buy programs continued and is likely to continue for a while.

 

The rally momentum is very slow simply because there is no more buyers except the Fed/PPT, as everyone is already long the market.

 

The big risk is the Hong Kong dollar peg. If they ran out of foreign reserves to defend the peg, the peg will break.A break could cause a global stock market crash. Until then, all major indices is in buy mode on the daily timeframe.

 

On the intraday timeframe, key NQ line0in-the-sand for Tuesday will be at 9580.

-- If NQ can trade above 9580 on Tuesday it could continue to trend up, perhaps in a slow choppy fashion.

-- Trading below 9580 could cause a round of liquidation selling with 9500 as key support. There will be a lot of buyers waiting there, thus NQ would need to clearly break below 9500 to trigger a bearish day. with next lower support at 9350 area.

Protest continue on, and can affect the market