NQ traded sideways in a pullback mode on Wednesday, the second consecutive pullback day after breaking out above key resistance at 16,450.
Thursday being the third pullback day, NQ should rally. Key support on Thursday will be at 16,000. A clear break below 16,000 is bearish. Staying above 16,000 implies either more sideways action of rally.
A pullback consolidation day for NQ on Tuesday after breaking out above key resistance price level of 16,450.
NQ needs to proceed to rally higher on Wednesday to avoid a false-breakout situation above 16,450. Failure to rally on Wednesday would increase the likelihood of a break-back below 16,450 and cause a fast and sharp decline.
Key pricxe level for NQ on Wednesday will be at 16,450, now acting as key support level.
NQ rallied again on Thursday, the last trading day before Christmas. It has rallied to just 100 points below key resistance of 16,460.
16,450 will ke a very critical resistance. A sustained break could trigger massive short-covering rally if NQ can break and stay above 16,450.
Failure to break above 16,450 could send NQ back down to critical support of 16,050. A sustained break below 16,050 could tank NQ abck down to 15,500 support zone
Both the New York Stock Exchange and Nasdaq will be closed on Friday, Christmas Eve, in observance of the Christmas holiday, which falls on Saturday this year. Normally, the equity markets close at 1 p.m. on Christmas Eve.
Merry Christmas
Massive short-covering rally on Tuesday with NQ trading down in the early morning. With NQ closing at the day high we may get some more short-covering in the morning on Wednesday.
The rally should at least continue for another two more days, with a choppy rally or a fast rally.The next resistance is at 16,100, and then if that is broken, the next higher resistance is at 16,450.
Key inflection price level for NQ on Wednesday will be at 15,900. Short-covering rally to continue above it, and trading below it implies NQ is going into consolidation with first support at 15,700.
On Monday, after making a lower low below December 3rd low NQ bounced off support. The rally accelerated into the close on Monday, setting up a large gap-up opening on Tuesday that could rocket it to the next resistance level around 15,950.
NQ is already trading at around 15,800 at the moment. If NQ should open above 15,950 on Tuesday, it could quickly rocket up to the next resistance at 16.350.
Key inflection price level for NQ on Tuesday will be at 15,650, bearish below it.
A sideways consolidation pattern for NQ on Friday. Following a strong selling day on Thursday, the sideways price action is setting up a fast a large decline on Monday, that is, if NQ can break below key support 15,700, we could see a real waterfall decline.
NQ would need to stay above 15,650 to prevent massive selling. Thus, NQ would need to stay above 15,70 to remain sideways or rally.
Wednesday was a very large up day as a result of the Fed buy programs. But sellers came back in on Thursday to tank the market back down to pre-FOMC announcement.
Since Friday tends to be a sideways type of day, NQ may trade sideways on Friday, as long a it does npot breakout of the current trading range, from 15,550 to 15,450.
As long as NQ remaisn inside the range, we should see NQ remaining choppy
On the 5-minute chart key inflection price level for NQ on Friday will be at 15,900, first resistance at 16,200. Below 15,900, first support is 15,700.
As expected, a massive buy programs by the Fed was triggered after they policy announce in the afternoon on Wednesday cause NQ to rally about 600 points from the day low.
The Fed normally follow this type of day with another round of buy programs in order not to disappoint investors and to cause a Santa clause rally the market into Christmas.
In rider to cause a massive rally NQ needs to break above key resistance level at 16,450. A sustained break above price level should cause a massive rally into the year end
Again, key Line-in-the-Sand is 16,450, extreme bullish if it can break above it, but NQ will be bearish if it is not able to break above it.bearish below it
Wednesday will be an interesting day because the FOMC will be announcing their monetary policy going forward.
We all know that the Fed does not have any good options left. The have put themselves into a corner. With high inflation and the need to continue to liquefy the financial system to avoid catastrophic collapse, we shall see which course of action they will take.
It is very likely the Fed will be ready with massive bug programs after the decision announcement. Will they be able to rocket the market with their buy programs, only time will tell, and anything is possible.
Key level to watch for on Wednesday especially after the announcement is 15,550 key support and 16,450 key resistance. A sustained breakout of the range could cause a strong trending move out of the range.
On Monday NQ opened above support then dropped down to support where it chop around above support for a while before break below iit and trend down all day on T=Monday.
For Tuesday NW either rally or trade sideways as long it it can stay above Monday low, which is key support for NQ on Tuesday.
If NQ can stay above Monday low we could see som,e [profit-taking and some buying which may cause a rally or sideways trading action.
Trading below Monday low is bearish and can casue a fast move down, next support is 15,550
FOMC meeting this week (Wednesday) announcement is very important for the market.
As usual, NQ traded sideways on Friday choppy downswing in the morning then choppy rally in the afternoon with a bullish closing.
Key inflection price level for NQ in the morning will be at 16,780, bullish bias above and bearish bias below it.
The first set of resistance is at 16,420-16,450. A clear and sustained break above that should rocket NQ higher with upside target of 17,000 which should take it about 2 to 3 days to get there.
Failure to break above 16,450 is bearish, and thus could attract selling to tank NQ back down to key support at 16,080.
On Thursday NQ opened below key resistance then immediately rally up to it and failed, thus triggered massive selling and profit-taking that lasted into the close, a large down day for NQ.
With tomorrow being Friday we could either see NQ trading sideways above key support, or break below support and triggers massive selling.
On Friday, NQ key support is at 16,060-16,160, a 100-points support zone. Should support breaks, we should see second down-days. If NQ is able to stay above support, we could see a sideways market or a trend up day on Friday with resistance at 16,250 then 16,420
On Wednesday, following a large gap-up and trend up day on Tuesday, NQ traded sideways in a narrow trading range, consolidation the very large Tuesday rally.
Wednesday was the 3rd rally day making Thursday a very key day for NQ. It either breakout and rally, to test the recent high or trend abck down to resume the downtrend.
Key level to watch for on Thursday will be at 16,450 now acting as a double-top resistance.
If NQ fail to break above it, we could see sellers coming in to sell the resistance. If so, support is at 16,000.
A sustained break above 16,450 is likely to trigger another round of short-covering. If so, the next resistance is the previous swing high at 16,750 zone.
On Tuesday NQ opened with a huge gap-up and then trend up all day, closing at the day high and just below resistance at 16,350.
On Wednesday, key price level for NQ will be at 16,250 support and 16,350 resistance (16,250-16,350 trading range).
A breakout of the 16,250-16,350 range could cause a fast move in the direction of the breakout. Above 16,350, the next upside resistance is at 16,450. Below 16,250, the next support is at 16,050
After a brief and sharp sell-off in the morning on Monday NQ reversed and rallied all day on Monday to close at the day high, setting up a trending up day, short-covering day on Tuesday, that is, as long as NQ can stay above 15,800, as key inflection price level for NQ on Tuesday.
Trading above 15,800 would forced the shorts to cover which could lead to rally up to 16,050. If that is broken, then the next upside target could be anywhere between 16,200-16,400.
Trading back below 15,800 is bearish,. If so, the next support is again at 15,550
A large down-day for NQ on Friday with the low of the day breaking below major support, the 50-day moving average and prior swing high established in September.
The momentum down is so strong that support may not hold. If so, we could see a real big crash because the next downside target is not until the 200-day moving average on the daily chart, now at 14,500.
Should the current support, Friday low, hold, we could see massive short-covering and algo buying.
Key inflection price level for NQ on Monday will be at 15,650 on the September 2021 contract, bullish above it, with the next resistance at 15,800 and bearish below it with the next support at Friday low, 15,550 area.
NQ bounced off from above strong support on Thursday and then close near the high of the day, below strong resistance at 16,050, which will become key inflection price level for NQ on Fridat.
Above 16,050 is bullish and if it vcan stay above 165,050 we could see a short-covering rally that can push NQ up to 16,350 - 16,425 strong resistance.
Staying below 16,050 is bearish, support is at 15,600-15,700
A very large down day for NQ on Wednesday, with NQ dropping over 600 points from its early morning high to close at the day low, setting up a potential heavy forced margin selling in the morning. If so, strong support is at 15,600-15,700 price zone, a combination of its 50-day moving average support and prior swing high from September..
However, should NQ crashes through support, we could see another round of liquidation selling. But if 15,600-15,700 support hold, we could see massive short-covering rally that could take NQ back up to 16,425 resistance.
Massive selling from the Fed just talking about tapering their QE. What would happen when the actually are forced to taper?
