NQ Guideline For Tuesday

NQ trend up all day on Monday with the open near the low of the day and the close near the high of the day, a bullish close.

 

Very often, after a trending day we would see a sideways consolidation pattern trading between the 200-ma support and a new higher high, usually achieved in the early trading session as traders gets very bullish in the early morning, then profit-taking sets in and cause a decline down to supports, Floor Traders Pivots or all the way down to 200-ma on the 5-min chart.

 

Key line-in-the-sand tomorrow will be at 12,090

-- Bullish above targeting a break above Monday high

-- Bearish below it, targeting 200-moving average on the 5-minute chart

NQ Guideline For Monday

Friday was day two consolidation after a large trending up day on Wednesday, and it was also an inside day, setting a large trending day, and it could trend large on Monday.

 

Daily trend is up, but it is now going into a parabolic mode, vulnerable to a sharp reversal down.

 

The 60-minute trend is also up, but setting up a bearish divergence on a break above the high.

 

The key to a trending move is the opening that is outside prior trading range. Opening outside prior day range sets up a large trending move in the direction of the breakout, or it can set up a large reversal day, which is a trending move in the direction opposite of the breakout.

 

On Monday, the key price level will be prior day high and prior day low.

-- Opening above prior day high is an indication the trend is up, as long as it does not break back into prior day trading range.

-- Opening below prior day low is an indication the trend is down, as long as it does not break back up above prior day low.

 

A break back into the prior day trading range, after opening outside prior day range, is a indication of a reversal day.

NQ Guideline For Friday

As expected NQ traded sideways on Thursday following a large trending up day on Wednesday.

 

With Friday tending to be a choppy sideways type of day, we could see another day of sideways pattern.

 

NQ would have to opens outside Thursday trading range to trigger a trending day or a fast reversal day

 

11,950 will be a key line-in-the-sand for NQ on Friday.

-- Bullish bias above it, upside target is above Thursday high.

-- Bearish bias below it, with downside target at either the 200--ma  or below Thursday low

NQ Guideline for Thursday

A breakout day for NQ on Wednesday with NQ opening with a gap-up above prior day high. Profit-taking soon after the open failed to tank NQ lower. Those who went short were forced to cover as NQ rallied higher all day.

 

NQ closed at the high of the day. With such a large up day on Wednesday it is likely that NQ would need to consolidate the hug rally and spend Thursday trading sideways.

 

However, with the Fed currently at their annual meeting in Jackson hole, any unexpected statement could change the market pattern in an instant.

Key line-in-the-sand for NQ on Thursday will be at 11,900

-- Bullish above, with upside target is a break above Wednesday swing high.

-- Bearish below it with lower target at 11,800

NQ Guideline For Wednesday

On Tuesday NQ opened with a gap-down but still above the key support level on the 5-minute chart, thus it opened with a bullish bias.

 

As such, NQ slowly rallied higher as the shorts continued to cover. Although the close was at prior day high many of the stop-loss are still above Monday swing high, which should give a huge incentive to the market manipulators to push the market higher just to run-over the stop-losses so that they can then exit and reverse short.

 

Without enough buyers to overwhelmed selling on a break above Monday swing high, NQ should reverse sharply back down.

 

So the key line-in-the-sand once Monday swing high has been broken will be Monday's high. Once broken, NQ either rocket higher or reverse sharply back down.

NQ Guideline For Tuesday

NQ opened with a huge gap-up to end wave 5 up on the 60-mnute chart as mentioned in yesterday guidelines. A such NQ sold off very quickly on monday, dropping down to support before trading sideways, consolidating the huge decline.

 

NQ is set to drop lower on Tuesday, but strong support is now at 11,540. NQ would need to clearly break below Monday swing low to trigger more selling. if so the next support is 11,440, then a much stronger support at 11,275 

 

However, as long as 11,540 support is not clearly violated we would see more sideways trading pattern, or a rally back up to Mondays swing high simply because the market is being directly supported by the Fed, and the may not want to let the market go down.

NQ Guideline For Monday

After a large up-trending day on Tuesday NQ traded in a narrow-range sideways consolidation pattern.

 

On Monday, a new higher high in the morning could then be followed by a pullback down move, but expecting it to rally back up as long as the down-move does not get too large.

 

Key inflection price level for NQ on Monday will be 11,540

-- If NQ opens and trade above 11,540 we could see NQ makes a higher high first, but then pullback down.

-- If NQ should break below 11,540 during the pullback down move we could then see a quick drop down to 112,440 area before rallying back up again.

-- If the open is below 11,540 in the morning we should see a quick drop down to 11,440 before rallying back up to make another higher high, provide it can re-break back above 11,540. 

NQ Guideline For Friday

A large rally day for NQ on Thursday with the morning low a perfect test of prior swing high. With the close at the day high and NQ in overbought condition on several commonly followed time frame we could see a sideways consolidation day on Friday.

 

Consolidation support for NQ on Friday will be between 11,380 to 11,400.

-- And as long as 11,380 is not violated we should see a sideways consolidation, NQ making a new high in the morning or in the afternoon.

NQ Guideline For Friday

As expected NQ traded sideways on Thursday following a huge rally day on Wednesday. With such a huge trend day on Wednesday we could see another sideways consolidation type of day on Friday.

 

Key support on Friday is 11,130, and as long as NQ continues to trade above 11,130 we should see either a sideways day on Friday or even a rally day, although a huge rally day event is a lower probability.

 

If NQ should break below 11,130, we could see sharp selling, but that is also a low probability event.

NQ Guideline For Thursday

NQ opened with a large gap-up on Wednesday and then triggered short-covering that lasted all day into the close.

 

With such a large up-move, we could see NQ having to consolidate the large up-move on Thursday. If so we could see sideways action between 11,060-11,080 support and 11,200 resistance.

 

With most stop-losses for buyers now sitting just below Wednesday swing low of 10,960,, NQ would need to break back below 10,960 to turn bearish again.

 

As long as NQ continues to trade above 10,960 we could see NQ trading either sideways or continue to trend up if short-sellers continue to cover 

NQ Guideline For Wednesday

NQ rallied in the morning on Tuesday and then sold off off hard in the afternoon into the close.

 

If NQ 3-days downtrend on the daily chart is going to continue down on Wednesday, we should see NQ rallying in the morning and then sell-off in the afternoon.

 

If NQ should trend down in the morning we could see NQ rallying up during lunch and then either continue up in the afternoon or trend back down in the afternoon.

 

Key inflection price level for NQ on Wednesday will be at 10,940

-- If NQ should trade below that level in the morning we could see NQ sell-off in the morning.

-- If NQ trades above 10,940 soon after the open, then we could see NQ rally in the morning and sell-off in the afternoon if the rally does not break above Tuesday swing high.

NQ Guideline For Tuesday

NQ sell-off that started on Friday continued into Monday morning, with NQ dropping lower that Friday swing low before it found support and rallied.

 

NQ trade sideways in the afternoon, setting up another trending upswing on Tuesday. To do so NQ has to trade above key resistance at 11,150 and trigger short-covering.

 

Failure to trade above 11,150 is bearish, and may simply continue to trade sideways unless NQ trades below 11,040 key support price level.

 

A sustained break below 11,040 has the potential to trigger heavy selling and tank NQ lower.

 

Key resistance is 11,050, breakout above it.

Key support is 11,040, breakdown below it

 

NQ Guideline For Monday

A down day for NQ on Friday, with the open closer to the high and the close closer to the low, and at key line-in-the-sand for Monday.

 

With the low on Friday bouncing off prior swing high-now support, NQ would need to break below 10,980 to trigger massive selling.

 

Staying above 10,980, NQ is likely to either trade sideways or rally back up to the Thursday/Friday high.

 

NQ needs to break above 11,130 to trigger another round of short-covering.

-- Below it, NQ would simply trade sideways unless it breaks below 10,980.

NQ Guideline For Friday

After three consecutive days of narrow-range choppy consolidation days hovering just above prior swing high, the July high, the shorts finally gave in and starts to cover on Thursday morning. As a result it triggered a large rally day, a true breakout day, with the low near the open, and the close at the high of the day.

 

The rally may have finally exhausted itself and trend reversal may be going to happen at anytime now.

 

Key support on the intraday basis is the 200-movng average on the 5-minute chart. As long as NQ continues to trade above it, the uptrend is still in progress.

 

A clear break below it, which should happen soon, is an indication NQ is going into a larger consolidation down move, targeting 11,000 - 11,050 area.

 

Should NQ drops lower, and break below 10,980, we could see a massive liquidation selling as trailing stop-losses gets run-over.

NQ Guideline for Wednesday

On Tuesday NQ simply traded sideways and a decline in late afternoon own to near the 200-ma support was aggressively bought, pushing NQ to close at the high of the day.

 

The close was above July swing high. If it continues to trade above July high on Wednesday we could see some shorts starting to cover. If so, we could see a huge rally on Wednesday.

 

Should NQ failed to stay above 10,060, we could see seller coming in. However, NQ would need to break below Tuesday low of 10,890 to trigger some stop-loss, and cause a huge selling.

 

Key line-in-the-sand for NQ on Wednesday will be 10,060, bullish above, bearish below it..

NQ Guideline For Tuesday

NQ opened with a huge gap-up on Monday, briefly trade above the July high then traded sideways for the rest of the day.

 

Buying has been exhausted, NQ would need to trade above July high and able to force the shorts to cover to get any rally. Unless it can trigger short-covering NQ is going down towards intraday support on Tuesday, the 200-ma on the 5-minute chart, then trade sideways from there unless of course support gets broken to the downside.

 

Key inflection price zone for NQ on Tuesday will be at 11,060

--  Bullish above it, if enough shorts are forced to cover we could see more rally.

-- Below 11,060 we could see NQ dropping down to support, first support is the 200-ma on the 5-minute chart.

NQ Guideline For Monday

As usual, NQ traded sideways on Friday, trended down to support in the morning and then rallied in the afternoon, with a close at the high of the day.

 

On Monday we could see NQ rally in the morning if it trades above 10,900, then reverse and trend down in the afternoon.

 

Trading below 10,900 in the morning is an indication that NQ is likely to trend down in the morning then rally in the afternoon.

 

Inflection price zone for NQ on Monday will be at 10,840, bullish above, bearish below it