A choppy down day for NQ on Thursday. Fridays used to be very choppy and sideways type of days. However, recently Friday has been trending down as traders exit their long position as they are not willing to take the risk of holding longs through the weekends.
Key inflection price level for NQ on Friday will be at 14,800, bullish bias above, bearish bias below it, with the next lower support at 14,400.
A bearish sideways consolidation trading action and pattern for NQ on Wednesday, setting up for a big down day once consolidation has ended. The downtrend may resume either on Thursday or Friday.
The daily time-frame is bearish, and the 60-minute time-frame is also bearish. However, NQ could continue to consolidate or even rally for the next several day before tanking back down again.
On the short term intraday time-frame, key inflection price level for NQ is at 14,800, bullish above it with key resistance at 14,900, and bearish below ir.
On Tuesday NQ opened with a huge gap-down then trend down seven waves on the 5-minute chart time-frame before the decline stopped, then spent the rest of the day trading sideways. If the sideways consolidation has ended, NQ should trend back down again on Wednesday.
Key price level to watch for on Wednesday will be Tuesday swing low. Trading below Tuesday low, 14,740, is going to run over more trailing stop-losses, the next support is 14,400.
If NQ can stay above Tuesday low, it may either trade sideways or rally as the short may decide to cover.
On Monday NQ opened with a huge gap-down and then quickly and immediately dropped down to support. It then traded sideways between support and resistance all day long.
For Tuesday trading session, it is likely NQ is going to trade sideways again between support at 15,120 and resistance at 15,260..
However, if NQ should trade outside the 15,120-15,260 trading range, and stay out of the range, we could see a fast trending move away from the range.
A false breakout of the range is likely to trigger a fast reversal.
With NO taper any time soon, and No taper ever simply because of the debt trap, the market may just continue to melt-up and up as hyperinflation of fiat currencies world wide drives asset prices higher as investors seeks protection from massive inflation due to pure money printing by world central banks
The possible black swan even that could cause the deflationary forces to overwhelm central banks money creation activities would be a massive real estate collapse in China, with contagion to the rest of the world. As long as the contagion from Evergrande is contained, asset inflation should continue.
On the short term intraday time-frame, key inflection price level for NQ on Monday will be at 15,350, bullish above with upside target at 15,550, bearish if it cannot stay above it, with first downside target at 15,150
With the Fed not going to start tapering anytime soon the shorts continued to cover on Thursday, pushing NQ up to key resistance at 15,350, now key line-in-the-sand.
However, even with NO taper by the Fed but with the 10-year treasury yield currently going higher due to persistent inflation, and if the yield continue to go higher, even without the Fed taper, the stock market is still vulnerable to a massive algo selling, the next key level will be at 1.50% on the 10-year treasury bond.
On the short term intraday basis for NQ on Friday, key inflection price level will be at 15,320, bullish above, bearish below it, lower supports is at 15,200
A rally day for NQ on Wednesday, the third pullback day since breaking below the 50-day moving average on the daily chart.
Now that the FOMC decision on policy is out of the day, if the fast downtrend is going to continue right away we should see NQ start to trend down on Thursday. If that does not happen, we can expect further sideways consolidation days or rally up day.
With the Fed not doing any taper to their QE anytime soon, we could see the stock market rallying back up again, with first resistance break is the 50-day moving average on the daily chart, now at 15,170
Key intraday price level for NQ for Thursday will be at 15,200 resistance. Bullish above and bearish below it.
On Monday, NQ opened below its 50-day moving average on the daily chart, thus triggered massive selling that lasted most of the day. It was a very large down day.
NQ is now clearly in a downtrend on the daily chart, with downside target its 200-dma on the daily chart, now at 13,800.
Key level to watch would be the 50-dma on the daily chart, now at 15,180. As long as NQ remains below 15,180, selling pressure should continue.
Key intraday inflection price level for NQ on Tuesday will be at 14,900, bullish above it, with first upside resistance at 15,150. Bearish below it with first support at 14,800 then 14,400.
NQ day high on Friday was the 20-dma on the daily chart, its key inflection price zone. As NQ opened below the 20-dma, sellers came in aggressively tanking the market and caused a large trending down day for NQ on Friday.
The open was at the day high and the close was at the day low, setting up for a potential bounce day for NQ on Monday or another large sell-off day, and it depends on where it opens and trade soon after the open on Monday.
Key intraday inflection price level for NQ on Monday will be at 15,320.
-- Bullish above it with the first resistance at 15,400, and bearish below it with first support at 15,150, and then a stronger support at 15,000
NQ sold off again soon after the open in the morning on Thursday. This pattern of institutional selling in the morning then followed by retail buying in the afternoon should continue until institution has completed their distribution activities, or until some external even forced many funds to have to sell their position whether they want it or not. That time is coming soon.
On the intraday time-frame, key price level for NQ on Friday will be at 15,520, bullish above, bearish below it
On Wednesday the downtrend finally reversed back up in a convincing fashion. NQ again broke down below its key 20-dma support for the third day in a row on Wednesday morning but failed to trigger sell programs. The shorts eventually cover, causing NQ to reverse back up.
As long as NQ does not drop back down below 15,400 price level, NQ will have a bullish bias. However, trading back below 15,400 is bearish.
Key line-in-the-sand for NQ on Thursday will be at 15,520-15,560 resistance. NQ would need to break above 15,560 to continue the rally.
The stock market is now at the verge of breaking down and tank hard.
If the S&P 500 can break below its 50-dma and if NQ breaks below its 20-dma, we could see a sharp and large sustained decline, a mini crash.
However, if both the NQ and S&P 500 can remain above their respective key support, we could eventually see a sharp short-covering rally.
On the short-term intraday time frame, key support for NQ on Wednesday will again be at 15,400, bullish above with resistances at 15,440 then 15,520-15,560 as key resistance zone, and bearish below it, with potential mini crash.
Another large down day for NQ on Monday following a large down day on Friday. The low of the day for NQ was below key 20-dma support on the daily chart..However NQ managed to close above the 20-dma on the daily chart.
Key line-in-the-sand price level for NQ going forward ios at 15,400, bullish above it, and bearish below it.
On the short-term intraday time-frame, key inflection price level for NQ on Tuesday is also at 15,400, bullish above it with key resistance at 15,520. A sustained break above it could trigger some short-covering rally day as the shorts may be forced to cover.
A large down day for NQ on Friday. With the Fed Chairman determined to prevent the dollar collapse they may sacrifice the stock and the bond market to save the dollar.
Jerome Powell insist the Fed will starts to reduce their QE by 15 billion per month, from the current 120 billion per month to 105 billion a month. Still massive QE but smaller QE. Even then, the stock market and the crypto market may crash spectacularly.
Key price level to watch on Monday will be the 20-dma on the daily chart, now currently at 15,370. As long as NQ trades above 15,370 zone we could see the decline stabilise and may bounce.
A break below 20-dma this time, is likely to trigger massive liquidation, with the next lower target at 15,000-15,150
NQ traded sideways but with a slightly bearish bias, the open was near the day high and the close was near the day low, a down day.
On Friday, with its bas towards a choppy sideways trading action, unless there is a market moving new release that knocks the market off balance, we could see another sideways type of day again, with key resistance at 15,620 , and key support at 15,520.
A break out of the range 15,520-15,620 could cause a fast move out to the next resistance 15,720, and the next support at 15,420.
NQ traded sideways on Wednesday with the usual early morning selling by institutions then buying by retail investors.
This pattern is going to continue for a while until institutions has unloaded majority of their positions before selling the rest of their position, which would tank and tank the market
Key inflection price level for NQ on Thursday will be at 15,600, bullish above with key resistance at 15,700, and bearoish below it with key support at 15,520.
NQ traded sideways in a very narrow range on Tuesday. With not many buyers at this level, and no sellers either, NQ simply trade sideways.
On Wednesday key price level will again be at 15,700, bullish above it bearish below it, However, if there is no market moving news release, we could continue to see NQ traded sideways in a narrow trading range on Wednesday, as many large institutional traders are still on holiday until next week.
A sideways trading action for NQ on Friday. The market was closed on Monday. When the market reopens on Tuesday key line-in-the-sand for NQ will be 15700.
NQ is bullish above 15,700 and it could be a trending up day, with the next upside target at 15,800, and bearish below it, implies more choppy trading action, with the first support at 15,640, then key support at 15,570.
A down day for NQ on Thursday, and a larger trading range than the last couple of days.
Friday could be choppy again, with key inflection price level at 16,620 again, bullish bias above it and bearish bias below it, first support at 15,520
NQ opened above prior day high which immediately forced the shorts to cover causing a sharp spike. But once all the short term shorts traders has covered NQ dropped back down simply because there is no more buyers up here.
NQ closed back down and closed at prior day just above key line -in-the-sand 15,620, which will be a line-in-the-sand again for NQ on Thursday., bullish bias above it and bearish bias below it.
With most large institutional investors out of the office for the long weekend holidays, we are ;likely going to witness another choppy sideways type of day.
