NQ Guideline For Wednesday

As expected, following a large trending up day on Monday, NQ traded sideways in a consolidation pattern on Tuesday.

NQ closed in a bullish zone for Wednesday, however, it may not be ready to trend again, As long as it stay above key intraday support at 12,820, we could see either another day of consolidation or a trend up day on Wednesday.

Again key intraday line-in-the-sand for NQ on Wednesday will be 12,820. Above 12,820 the buyers are still in control, bullish bias. However, should NQ break below 12,820 we could see sharp selling period as trailing stop-loss for the buyers get run-over.

NQ Guideline For Tuesday

As expected after a brief pullback in the morning on Monday, NQ then rallied all day with a small profit-taking decline at the end of the day.

On Tuesday we could expect some pullback either soon after the open or later in the afternoon, depending on where NQ opens.in relation to its intraday inflection price level, which on Tuesday will be at 12,820.

Staying above 12,820 at the open is an indication NQ is going to rally to another higher high before then pulling back down to support levels, 12, 820, then 12,785, 12,755

With most traders still on holidays, we could expect very choppy trading action going forward

NQ Guideline For Monday

After spending six days mostly inside a narrow trading range between 12,650 to 12,750 trading zone, NQ may be ready for a large trending day on Monday, the trend direction will depends on where NQ would open on Monday. 

Overnight NQ is trading up, after President Trump agreed on the stimulus and likely was followed by massive buy programs by the treasury department in order to cause a big rally, which is likely top occur on Monday.

Key intraday line-in-the-sand for NQ on Monday will be at 12,690, bullish above, with realistic upside target at 12,890, bearish below it.

NQ Guideline For Wednesday

With most traders now already on holidays, NQ traded sideways on Tuesday, with morning selloff then reversed back up.

The pattern is likely to continue for the next 2 days, sideways actions with less volatility in the afternoon.

However, as always, we must always expect the unexpected, the pattern could change.

NQ Guideline For Tuesday

The stock market sold off hard in the morning on Monday likely due to end of the year rebalancing activities, but the Fed was there to support the market by injecting massive liquidity into the banking system.

The market rallied really sharply back up. This type of activities is likely to continue into the year end as fund continue to rebalance, and the Fed will continue to stand by to support the market. As for NQ, as long as it continues to trade above 12,400, buying the dip should still works.

Trading below 12,400 could change the trade bias from bullish to bearish.

NQ Guideline For Monday

On Friday NQ opened with a gap-up, then trend down all day until the very end when arbitrage machine has stopped trading, some entity triggered massive buy programs that lasted into the close.

With the 900 billion Covid stimulus now has been agreed upon we could see a bullish Monday, as long as it can stay above key support levels.

For NQ going into Monday key intra-day support level will be at 12,701. Will remain in a bullish mode above it. If NQ is not able to stay above 12,700 in spite of the agreement on the 900 billion, that would be very bearish for the market.

NQ Guideline For Friday

A very choppy sideways day for NQ on Thursday. The choppy action may continue on Friday because Friday tends to be a choppy day.

Key support/resistance level for NQ on Friday will be at 12,730. bullish above it with upside target above Thursday high, and bearish below it with downside target at 200-ma. 

NQ Guideline For Thursday

On Wednesday, ahead of the FOMC decision the market slowly continued to rally in a choppy slow manner, liekly just from short-covering because most traders and investors are already long the market, there is no more buyers.

NQ is slowly approaching extreme overbought on the daily time-frame, but on all time-frame, everything is still pointing to the bullish side. The FOMC did not change any of their current policies. With Biden sure to be the next US presided the flood gate is wide open for massive money printing.

With central banks still has an effective control on the gold and silver manipulation scheme, look for Bitcoin to lead the charge higher, on Wednesday breaking above 20K. If global central banks fail to control bitcoin rise, the paper money regime will collapse much quicker that everyone think is possible.

On Thursday, with NQ in overbought zone on the intraday 5-minute timeframe, look for possible pullback in the morning before rally again, as long as any pullback does not break key intraday support, on Tuesday will be at 12,570

NQ Guideline For Wednesday

On Tuesday, NQ was engineered to open above prior day high, to trigger short-covering and push NQ back into the bullish zone. 

With the close at the day high on Tuesday, it kept NQ in the bullish zone. However, the close was also in overbought zone, vulnerable to a shar pullback before rallying up again.

NQ would need to clearly break below Tuesday low during a pullback decline move to cause a reversal, from uptrend to a downtrend.

NQ Guideline For Tuesday

On Monday NQ opened with a gap-up and forced a lot of shorts to cover, thus continued the rally that started on Friday afternoon. It started to look like it was going to trend up all day. 

However, after most of the shorts has covered, buying was overwhelmed by selling forcing NQ to dropped down towards the open, a very unusual pattern. At the end of the day NQ looks bearish, a shooting start candlestick pattern on the daily chart, 

Without rallying back above Monday swing high, we could see selling pressure accelerating. A break below key support on the intra-day 5-minute chart, at 12,400, we could see heavy selling.

NQ Guideline For Monday

On Friday after trending down in the morning, NQ reversed back up and trend up in the afternoon. At the end of the day NQ was pushing into overbought zone on the 5-minute chart.

On Monday, if NQ would open above Friday's swing high into overbought zone we could see a pullback down move before resuming the rally, as long as the move down does not violate key support, which for Monday will be around 12,330.

If the pullback decline should clearly break below 12,330 we could see a resumption of a downtrend. If so look for a ;large decline if it can break below Thursday low, and then stay below Thursday low. 

NQ 60-minute Chart

NQ Guideline For Friday

After a large down trending day on Wednesday, Thursday was a sideways consolidation type of day, with early morning margin selling followed by a reversal back up.

Friday is often a sideways consolidation day, so we could expected NQ to trade between support at around 12,300 and resistant at around 12,480-12,500.

As always, look for unexpected market moving new that can cause NQ to trend, down or up, with key line-in-the-sand at 12,500

Potential trading range 12,300 - 12500

NQ Guideline For Thursday

On Wednesday NQ opened and traded down to support, trying to duplicate Tuesday's price pattern. However, the market does not usually repeat the exact pattern two days in a row.

Instead of rallying after the initial decline soon after the open in the morning NQ traded sideways then broke below key support. This time there was not much buying below support, instead it triggered a massive selling which ran over massive numbers of trailing stop-losses, triggering massive selling that lasted into the close.

On Thursday, it is likely NQ may make another lower low, down to support before rallying sharply, perhaps during lunch or in the afternoon depending on when it makes a lower low.

Key support, provided by previous swing highs, one from November 16th, at around 12,260 then at 12,020 from October 12 swing high.

If we get a bearish market internals on Thursday, because there are so many traders long the market, a continual margin call on Thursday could cause heavy selling that would easily crash through those above  supports, 12,020-12,260 zone.

NQ Guideline For Wednesday

After a sharp selling early in the morning, NQ spent the rest of the day rallying again into a new high. Announcement of massive money printing by all the central banks around the world should keep the rally going.

Over $700 billions new money printing by the Bank of Japan, over $600 billions by the ECB and likely over one trillion dollars by the Fed, many may be pure new money, unsanitized money creation, leading to syncronized global hyperinflation currency collapse.

Under that scenario, the stock market should go into hyper parabolic move to keep up with inflation.

On the short term intraday timeframe, key support for NQ on Wednesday will be at 12,580, bullish above, a deeper pb below it.

Zimbabwe Stock Index during their hyperinflationary collapse.

NQ Guideline For Tuesday

NQ continued to remain above key support on Monday thus continue to trend up in a very choppy action.. This type of pattern will continue util we can get a decent pullback down move, runo0ver trailing stop-losses, and then  and trap the short-sellers.

At the current price level, everyone who wants to be in the market has already bought, the current buying power is coming mostly from those covering their short position, the uptrend is lacking momentum.

Key support on Tuesday will be at 12,530. Choppy above, but could have a sharp decline on a sustained break below it

NQ is currently in overbought zone on the daily time-frame and the 60-minute time-frame. As such. could set up sharp unexpected selling.

NQ Guideline For Monday

NQ traded sideways in a very narrow range on Friday, a likely short term topping pattern as we can see from the 60-minute chart.

On the daily chart, NQ is not that far away from overbought price zone. So it is possible NQ could drop down below 20-ma on the 60-minute chart for one to three days, then to be followed by a rally again to higher high into the overbought zone on the daily chart.

Key support for NQ on Monday will be at around 12,480. A clear and sustained break below 12,480 is an indication NQ is going to drop down to support at 12,350, likely is a very fast impulsive decline.

NQ would need a big market moving news to cause a trending up day on Monday, thus above 12,480 we may just get another choppy narrow range type of day on Monday

NQ Guideline For Friday

 After making a higher high soon after the open on Thursday NQ traded sideways. With NQ in overbought zone on the 60-minute time frame and on the daily chart we could see NQ topping now and ready to reverse back down and trend down for a week or two, perhaps starting next week.

As NQ tends to trade sideways on Fridays, without a major catalyst,  look for NQ to chop around on Friday.

Key suppoprt/resistance zone for NQ on Friday will be at 12,470, bullish above and bearish bias below it, with both the upside target at 11,570 and support at 11,370

NQ Guideline For Thursday

 A sharp selloff for NQ on Wednesday right from the opening bell. NQ dropped down to support then rallied all day into the close. At the close of the day NQ looks set to trend up on Thursday

Both on the daily chart, and the 5-minute chart, the technical pattern for NQ looks good for a trending up day on Thursday. However, on the 60-minute time-frame, NQ could be setting up for a lower-high test of Tuesday high.

As such, I would be looking at 12,420 as key line-in-the-sand for trading NQ on Thursday, bullish above and bearish below it.

NQ Guideline For Wednesday

 A breakout day for NQ on Tuesday, with NQ opening above prior day high, then trend up all day, with a small profit-taking decline near the close.

On Tuesday, key inflection price level is at 12,460. If NQ should trade below 12,460 on Wednesday we could see NQ likely to trade sideways between support, 12,340 and resistance 12,460

Trading back above 12,460 could cause some short-covering activities that could send NQ back up to another higher high. If so, the next upside target is at arould 12,560