NQ traded sideways on Tuesday, in a very narrow trading range, ahead of the long labour day holiday weekend.
However, there is still a good possibility NQ could trend up tomorrow because when most traders and investors are now on a long weekend holiday, and if the Fed decide to push the market up they could easily do it when most are on holiday.
Support price level for NQ on Wednesday will be at 15,520, and potential trending up move above 15,620
A trend-up day for NQ on Monday with the open above price inflection zone which triggered a bullish bias day. It trend up all day into the close.
By the end of the day NQ was in deep overbought zone on the 60-minute and the daily time-frame thus vulnerable to a sharp pullback at any moment.
However, as long as it stays above key inflection price zone on Tuesday (15,590) the bias is to the upside. Breaking below it implies potential sharp drop down to support at 15,460.
A huge rally for NQ in the morning after Jerome Powell spoke at Jackson Hole, a very large buy programs likely trigger by the Fed to push thew stock market up. But it soon died down because there is no more buyers up at these level. The Fed may be the only buyer at this price level.
Key inflection [price level for NQ on Monday will be at 15,420, bullish above it and bearish below it, with first support at 15,360
Another sideways narrow-range trading action for NQ on Thursday. With central banks meeting in Jackson Hole this weekend, the market may just chop around as most institutional fund wait for more direction from the Fed regarding their monetary policy
As such, look for the market to continue to trade sideways until the news from the Jackson Hole meeting has been analysed by the majority of the market participant.
The market is bearish unless the Fed announces a more aggressive easy money policy.
An even narrower trading range for NQ on Wednesday as traders and investors wait for the news leaks from central bankers Jackson Hole's meeting.
When it starts to move, it could be a big move after two full days of consolidation. The direction of the next large move will depends on the news and on the technical price level line-in-the-sand, now at 15,350.
A very narrow range day for NQ on Tuesday as there is really no more buyers up here. After all the shorts that needs to cover has covered, there is no more momentum to the upside.
On Wednesday, NQ may need to pullback down to support to fine new buyers, or new buyers came into the market from somewhere and rally NQ further up.
Key support for NQ on Wednesday will be at 15,350, bearish below it, with first lower support at 15,280, and bullish above it, and if somehow new buyers shows up, we could see another rally day following a one-day consolidation..
A breakout day for NQ on Monday. Short-covering was triggered and lasted all day long. At the close, NQ close right at key inflection price level 15,320.
NQ will go into pullback consolidation mode below 15,320, and a continue to rally above it.
On Friday NQ rallied sharply in the morning, but then traded sideways in the afternoon, closing above key line-in-the-sand price level for Monday. The line-in-the-sand level is 15,070.
If NQ should open above 15,070, it would be bullish and would stay in a bullish mode as long any pullbacks remains above it 50-ma on the 5-minute chart.
A break below it on any pullback is an indication NQ rally has ended and that it is going into a pull-back down mode with the first downside target at its 200-ma on the 5-minute chart.
NQ opened with a huge gap-down on Thursday but immediately rallied closing the gap and then broke through all the resistances before pulling back down and then close at the neutral price level, 14,950, which will serve as inflections price level for Friday.
Unless we get market moving new before the open on Friday, we could see NQ trading in a choppy narrow-range all day simply because Friday tends to be choppy. If so, first resistance is 15,040, and support at 14,840.
Just a small mentioned of tapering by the Fed was enough to tanked the stock market in late afternoon. All major indices had broken and close below their respective 20-day moving average on the daily time frame.
Unless it can recover and rally back above their respective 20-dma, we could see a big sell-off very soon and it could happen on Thursday. If so the next support on NQ is at 14,700
Intraday inflection price level for NQ on Thursday will be at 124,940. The next resistance at 15,020, and support at 14,840
NQ trend down in the morning on Tuesday then reversed back up in the afternoon retracing some of the morning decline. However, the close was still below resistance, now at 15,020, Wednesday line-in-the-sand.
15,020 will be a very important price level for NQ on Wednesday. If NQ is not able to break above it and stay above it on Wednesday, the longer-term algos may starts their longs and reverse shorts or forced to reverse short, then we are going to see a sharp and large sell-off, with the next support at 14,670
Bullish above 15,020, with first upside target at 15,120.
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NQ trend down sharply in the morning on Monday only to then reversed sharply before lunch, closing at the high of the day.
The rally was very choppy, clearly manipulated by the Fed, and no genuine buying. The upside momentum on the daily time frame is clearly slowing down. It is now just a matter of time when the stock market is going to tank and tank and there is not much the Fed can do about it. For now, we tends to get sharp sell-off in the morning followed by choppy rally.
Key support on Tuesday will be at 15,070. Any pullback that stopped at or above 15,070 will get bought. Breaking below 15,070 will be bearish.
If NQ could break above 15,170, and triggers short-covering, we can see NQ spiking up to 15,200-15,300
A very narrow range choppy price pattern for NQ on Friday. It could be setting out for a small breakout to the upside on Monday. However, it may not be a trending day.
If NQ does break to the upside that starts to run over trailing stop-losses, is likely to trigger a rally that is followed by reversal maybe in the afternoon after all the shorts have covered.
Having said that, we should always watch out for a possible trending up day if NQ can break above the recent swing high of about 16,160 and then stay above it., there is always some chance that a breakout could trigger trending up day.
Key support for NQ on Monday will be at 15,060, key resistance at 15,160. A sustained breakout of the range could trigger trending move out, with possibility of a false-breakout.
On Thursday NQ opened and dropped down to support very quickly, the 20-day moving average on the daily chart, 14,960, and then bounced and reversed, rallying all day into the close.
NQ is now firmly above key intra-day support, at 15,030 for Friday. As long as there is no unexpected market moving new on Friday, NQ should have a bullish bias, with key support at 15,030.
Recent market actions, first, gap-up open continues to be sold, and second, a wide range morning price actions continues to be followed by choppy and narrow range trading action after lunch and into the close.
On NQ daily chart, NQ is still trading above its 20-day moving average, now at 14,050, but it is now not so far away above it. A sustained break below it is going to trigger a large trending move down. 20-dma is a strong support zone, thus, NQ would need to clearly break and stay below it to trigger a selloff.
Intra-day inflection price level is at 15,020 bullish above with first resistance at 15,080, bearish below it, first support at 14,960
I have been saying that NQ rally on the daily time-frame has been losing momentum. On Tuesday NQ finally had a pullback down move.
However, since its still trading above its key 20-ma daily, the bigger players are still in buy mode. NQ needs to break below 20-ma daily to trigger a big sell-off. Keep an eye on the 20-ma daily, now at 14,940
For Wednesday, key inflection price level for NQ will be at 15,040, first resistance at 15,100, first support at 14,940
A very narrow range day on Monday. There is no more momentum left in the current uptrend, as evryone who want to buy has bought.
There was also no sellers, simply because Q is still trading above its 20-dma on the daily chart. This choppy narrow range pattern of treading is going to continue as long as NQ remains above its 20-dma on the daily chart, now at 14930.
Key inflection price level for NQ on Tuesday will again be at 15,100, bullish above, bearish below it.
A narrow-range choppy day for NQ on Friday. With inflation expectation getting more mainstream which is beginning to forced the Fed into reducing their QE level, and the government running out of money, the market is starting to top, many may be forced to liquidate their stocks holding to pay their bills, we could start to see market selling off.
Key price level for NQ will be its 20-dma on the daily chart, 14,920. A break is likely to trigger heavy selling. Staying above it would imply more chops and more narrow range days.
For Monday key inflection price level will be at 15,100, bullish above it, bearish below it, with key support at 15,040, second support is at 14,920, 20-dma on the daily chart., should that level get violated, the next lower support is not until 14,450, its 50-dma on the daily chart.
A very choppy narrow range up-trending day for NQ on Thursday ahead of the all important employment report due to be released before the open in the morning on Friday.
With the bull market still in-charge, any good or bad employment reports should be interpreted as bullish for the market, The chop soon after the release is to be expected, but by the opening bell, we should know where the market trades in relations to their Thursday closing price.
For NQ key inflection price level on Friday will be at 15,150. If NQ should open and able to stay above 15,150 on Friday we should see a rally as some shorts may decide to cover. Trading below 15,150 could be bearish, with key support at 15,080, then 14,990. Should 14,990 be clearly violated we could see sharp and large sell-off.
Another choppy narrow range day for NQ on Wednesday with a slight bullish bias. The momentum for the current rally is dead, and really struggling to go up. There is hardly any more buyers left as everyone has bought and now almost everyone is long the market.
Without much buyer and without sellers, the market continue to chop around in a choppy narrow range action. Key support for NQ remains at its 20-day moving average on the daily chart, now at 14,880. As long as NQ can stay above 14,880, NQ would continue to have a slight bullish bias, any decline continues to get bought.
For Thursday, key intraday inflection price level for NQ will be at 15,080, with first resistance at 15,130 double-top, and slightly bearish below it with the first support at 15,040, then 14,980.
On Tuesday NQ opened and dropped down to its 20-ma on the daily chart, the third test of the 20-ma in the last five days.
Although there were still a lot of buyers at the 20-dma, the flattening of the 20-dma daily implies, the next it drop back down there, it is likely to break.
Key inflection price level for NQ on Wednesday will be at 15,010, bullish above, bearish below it.
On Wednesday we could see a rally if NQ can trade and stay above 15,010, and bearish below 15,010
NQ traded sideways on Monday, not able to trend up as the setup suggest, that's a bearish signal. However, key support now is 14,850, the 20-day moving average on the daily chart. Above 14,850 NQ may just continue to trade sideways in a choppy pattern. A break below 14,850 would likely trigger massive selling, with the next key support at around 14,400
Key intraday inflection price level for NQ on Tuesday will be at 14,980, bullish above with first resistance at 15,080, and bearish below it with first support at 14,880.
On Friday NQ opened right at its 20-day moving average on the daily chart, and immediately bounce off it to test resistance before pulling back down and trade sideways all day into the close.
The sideways action is setting up a potentially large trending move away from the 200-ma on the 5-minute chart, the direction will depends on where it trades oin relation to its 200-ma on the 5-minute chart.
Key price level (L-I-S) for NQ on Monday will be at 14,980, bullish above it and bearish below it.
The pattern on the 60-minute chart and the daily chart is bullish, indicating that the next trending move is up. Thus if NQ can open and stay above its key line-n-the-sand 14,980, we could see a big rally on Monday with the next upside target at 15,170-15,200 price zone.
Breaking below 14,980 could trigger selling, with first target at 14,800
