NQ sold off very hard in the morning on Monday but it then reversed and rallied the rest of the day into the close, setting up a bullish Tuesday.
Key line-in-the-sand for NQ on Tuesday will be at 12,260, with the next upside target at 12,410, and support at 12,200
The trend on the daily time-frame is UP but near overbought level. The trend on the 60-minute time-frame is also UP, but in overbought zone
NQ continue to rally into the Thanksgiving holidays. NQ has rallied into overbought zone on the 60-minute and the near overbought on the daily time-frame. As suck we could expect some alrger pullback this coming week.
With all the major indices still in bullish mode on the longer-term timeframe we could expect the rally to continue as long as pullbacks does not violated key technical level.
On the intraday time-frame, key inflection price level for NQ on Monday will be at around 12,250, bullish above and bearish below, with key support at the 200-ma on the 5-minute chart.The next lower support is 12,040
NQ trend down in the morning on Monday, then reversed and rally back up to equilibrium zone in the afternoon.
Key support/resistance price zone for NQ on Tuesday will be at 11,940. If NQ could trade and then stay above 11,940 we could see NQ rallying up towards resistance at 12,035.
A sustained break above 13,035 has the potential to trigger short-covering. If so we could see all day rally. However, failure to stay above 12,030 could cause a sharp reversal back down towards 11,940 area..
NQ is bearish below 11,940 with first support at 11,870. Short trading weeks due to Thanksgiving Holidays, usually has a bullish bias.
A narrow range, sideways day on Friday with a bearish close. On the daily chart and on the 60-min chart, the set-up is bearish.
However, for the sell-off to happen, both the Dow and the S&P 500 has to participate in the sell-off. As of Friday close, both the S&P 500 and the Dow are sitting at key support level, A break below will be bearish, failure to break will be bullish.
Key linein-the-sand for NQ on Monday will be at 11,970. NQ is bearish below it but it would need to break below 11,840 to run over trailing stop-losses.
At the close on Friday NQ was in very oversold zone on the intra-day 5-minute time-frame, and could cause some consolidation in the morning before trending back down.
If oversold bounce should break above 11,970 we could see NQ to continue to rally higher.
Again a narrow range sideways day for NQ on Thursday. With the Vix index in the low twenties, we could see lots on choppy sideways days, and fewer trending days. There will still be some trending days, but more non-trending days.
Key line-in-the-sand for NQ on Friday will be the 200-ma on the 5-minute chart (11,970). With Friday generally a non-trending day, we could see choppy action again on Friday.
On Wednesday NQ again traded sideways but with a range expansion and a bearish close. At the end of the day on Wednesday, both the daily chart and the 60-minute chart looks bearish, and ready for a big drop, which could happen tomorrow, Thursday.
With NQ closing in oversold on the 5-minute timeframe, we could first see a bounce at the open on Thursday. If the bounce does not break above the line-in-the-sand 11,940, NQ should then tank and trend down all day on Thursday, supports at 11,600-11,700
Trading back above 11,940 implies rally up to 12,000
A choppy narrow range day for NQ on Tuesday. Without a catalyst to knock the market out of balance, we could see another narrow-range choppy day on Wednesday.
Key line-in-the-sand for NQ on Wednesday is the 200-ma on the 5-min chart. NQ dould need to11,900 to cause run-over trailing stoploss for the bulls. Until then, NQ can continue to trade sideways in a narrow trading range.
On the 5-minute time-frame, NQ had a nice clean 5-wave rally from last week Thursday afternoon swing low to today's swing high. Wave 5 may not have ended at the end of the day on Monday. If so we should see more rally on Tuesday morning followed be a decline.
Key level to watch on Tuesday will be the 50-ma on the 5-min chart. Below 50-ma implies wave 5 rally on the 5-min chart has ended, and it should be followed by a decline towards the 200-ma on the 5-minute chart.
If, on the other hand, NQ continues to stay above 50-ma on the 5-min chart, the rally could continue to higher levels.
NQ pullback down to 200-ma support on Friday morning, then rally all day into the close.
With key breakout level above Thursday high for upside breakout and below Thursday low for downside breakout, look for short-covering or long covering to last all day on Monday. A trend-up above 11,960, and a trend down below 11,780.
A false-breakout can also reverse and trend all day in the opposite direction of the break.
A break above Thursday high, 11,960 on Monday and if it can stay above 11,960 could trigger a short-covering rall that can last all day on Monday.
Thursday was a sideways type of day, setting up a big move. However, since Friday tends to be a sideways type of day, the trending move may have to wait until Monday next week,
Key support for NQ on Friday will be at 11,800 and key resistance at 11,900. If NQ can break above 11,900, the next resistance is 12,000.
For Friday, NQ either stays inside Thursday trading range, or have a false-breakout of the range, and reversed.
On Wednesday NQ opened with a large gap-up which cuase the shorts to cover. A slow choppy rally that lasted all day into the close. That was a consolidation day following 2 large down days.
Consolidation sets up a large trending move, which could happen tomorrow on Thursday, the direction of the trending move will depend on where NQ trades in relation to Wednesday swing high and swing low.
The breakout of Wednesday range needs to be sustained, because a breakout that get reversed will trigger sharp reversal move.
Key support is Wednesday low, key resistance is Wednesday high, and there is no obvious direction.
Following a large down day on Monday NQ traded sideways on Tuesday, setting up another trend day, likely on Wednesday.
NQ closed right at the line-in-the-sand for Wednesday's trading, 11,625. Trading above it is bullish, with the next resistance at 11,800-11,900.
Key support is 11,500. A sustained break below 11,500 is likely to tank NQ down to 11,200
Market manipulators managed to pushed the equity indices up on Sunday night, in order to cause a huge opening gap-up on Monday, which it did.
However, they also hope to trigger massive short-covering rally to usher in Joe Biden winning the US presidency election. Short-covering did not happen in mass, instead, a huge gap-up triggered massive profit-taking selling which tanked the market down very hard, especially NQ.
As such NQ had a top-reversal tupe of day on Monday. It may not have much long-term impact, but on Tuesday we could see a follow-through selling in the morning.
Heavy selling on Monday could also mean a sideways market for NQ on Tuesday. Key inflection price zone for NQ on Tuesday will be at 11,800.
Trading below 11,800 level is bearish with the next support at 11,600. It is possible NQ could open with a gap-down and run down to 11,600 in the morning then rally back up, or just continue to sell lower. However, 11,600 is a very strong support zone.
Or NQ could open above 11,800 then rally to 12,050 resistance. A break above 12,050 could trigger short-covering. Failure to break above 12,050 could attract more selling.
Morgan Stanley's Michael Wilson has a very interesting chart of the S&P 500 before Monday trading session..
NQ traded sideways on Friday with selling in the early morning that was followed by a rally the rest of the day.
Now that many main stream media has declared Joe Biden has won the presidential election the stage is now set for unlimited money printing by the Fed.
The stage is set for gold rally, stock market rally and US dollar collapse as the future rounds on money-printing will not be sanitised, it will be pure money printing which will lead to global fiat money system currency collapse that would usher in new monetary system.
On the short term intraday time-frame, the stock market has rallied big overnight which should continue into Monday.
Key intraday line-in-the-sand for NQ on Monday will be at 12,040, bullish above, bearish below it. Below are charts showing how the stock market performed in the recent currency collapse, the top is Venezuela in Venezuela 2014-2017, and in Zimbabwe 2005-2007
Thursday was the second panic short-covering by the short-sellers, and those who got long before the rally is likely to take profit ahear of the long weekend. If so, we could have enough selling to tank the market hard on Friday.
Key price level for NQ going into Friday trading is at 12,050.and key support level is Thursday swing low.
Overnight on Thursday night NQ has traded below Thursday low. If NQ should open below Thursday low on Friday we could see heavy selling activities that could sink the market down to strong support at 11,750-11,800
Looks like President Trump is likely to lose the presidency.
A huge opening gap-up for the stock market on Wednesday with NQ opening with about 400 points up, in anticipation of Joe Biden victory in the presidential election and his huge money-printing scheme.
With Joe Biden now almost certain to win we should see continual rally on Thursday as short bets (those betting on Trump victory with less money printing) needs to cover.
Key price inflection zone for NQ on Thursday will be at 11,750. Bullish above it. A break below, although a less likely possibility, implies a larger pullback down, with the next lower support at 11,620
Gold price chart
On Tuesday, massive buy programs likely by the Trump administration ahead of the election pushed NQ up above resistance. It then dropped back down to etest broken resistance,11,200, now support.
Overnight on Tuesday night, NQ has already rallied over 400 points from the close. Things could change drastically by the morning depending on the election result.
The line-in-the-sand will remain at 11,200 acting as support for Wednesday, with key resistance at 11,600.
Election result will determine the direction of stock market on Wednesday.
Ahead of the the presidential election the stock market traded sideways on Monday, down-trending in the morning and rally in the afternoon.
The pattern should continue on Tuesday but expect the market to move out of the current range once the election is over, even though the result may not be known for a while.
Heavy selling in the stock market on Friday likely due to the uncertainty with the outcome of the upcoming Presidential election this coming Tuesday.
The selling ahead if the election by those holding huge profit may continue and if the outcome is going to be heavily contested we could see the selling becoming very unruly, i.e. a stock market crash.
Key resistance to hold on Monday will be 11,150. If NQ failed to break clear above 11,150 we could see real heavy selling coming back and overwhelmed buying.
If Friday low should break the next support is 10,650, a double-bottom with September low.
