NQ Guideline For Tuesday

Following two consecutive large rally days on Thursday and Friday last week NQ paused and traded sideways with a slightly bullish bias on Monday.

Monday being the 3rd up days in a row, we could get one more up day on Tuesday, or a reversal day on Tuesday. Key level to watch on the daily chart will be 14,000 support and 14,450-14,500 resistance

On the intraday 5-minute chart, key line-in-the-sand is at 14,150, bullish above it with the next resistance at 14,300 then 14, 450-14,500, bearish below it with critical support at 14,000

NQ Guideline for Monday

Massive short squeeze rally on Thursday and Friday last week. But without real genuine buying the market should sell-off again this week. 

The buy programs that triggered the short-squeeze last week  is certain to continue simply because the central banks can just print money to fund the buy programs.

Whether or not they can continue to push the market higher this week only time will tell. 

Key price level to watch will be at 14,000 as line-in-the-sand, bullish above it with the first resistance at 14,500, and bearish below it with key support at 13,700.

A sustained breakout of the 13,700-14,000 price range is likely to trigger fast moves out of the range.

NQ Guideline For Friday

Massive buy programs was triggered right at the open to avoid a catastrophic crash. Whoever did it probably spent trillions of dollars to buy everything up.

With the Ukrainian war in progress the buy programs is likely to continue on Friday. The question is, how much are they willing to spend. Not knowing the answer in advance, we can us price level to determine our bull/bear bias.

Key price level to watch on Friday will be at 14,000 zone. Short-covering to continue above it which will help the buy programs, with the next resistance at 14,500 then 15,000 if 14,500 is broken.

Selling will resume below 14,000 which will go against the buy programs.The day low today was clearly wave 5 down on the daily chart. Whether or not that low needs to be retested we just have to wait.

NQ Guideline For Thuirsday

A bearish day again for NQ on Wednesday. NQ crashed below 13,700 key double-bottom support on Wednesday. 

Overnight the sell-off has continued. If the Fed does not come to the rescue by the open we could see massive crash as margin call selling hit the market.

Again key line-in-the-sand for NQ on Thursday will be at 13,700, bearish below it, with the next major support at 12,200-12,400 provide by prior consolidation high from September to November 2020. A crash could cause NQ to drop down to that support and /or crash through it.

NQ Guideline For Wednesday

NQ traded sideways above key support level, 13,700. Stop-losses for those who went long at just above 13,700 double-bottom support will reside just below 13,700.

For those who were still holding short position, a failure to break below 13,700 could trigger some profit-taking (buying) activities that could catapult NQ back up and trigger some short-covering activities to force NQ back up to retest key resistance at 15,000

A sustained break below 13,700 could cause a mass exit and reverse short trades capable of tanking NQ down to the next support level, 12,000 - 12,200 in a very short time. 

NQ Guideline For Tuesday

The financial market was closed on Monday for the Washington's birthday, and will resume on Tuesday.

Last Friday was a very bearish day for NQ even with a large rally mid afternoon from the options expiration buying activities. Selling resumed late day into the close.

Key price zone line-in-the-sand going into this week will be the low in January at 13,700..

A violation of the low could easily trigger a very heavy selling. Although there may be some sharp pullbacks, a sustained break below 13,700 could quickly tank NQ down hard. If so the next downside target is support zone between 12,200-12,400, previous swing high from September -  November 2020 swing high.

If on the other hand, somehow wave 4 (see chart) has not ended, we could also see a sharp bounce off the 13,700 support

NQ Guideline For Friday

With large options expiration happening on Friday we could expect to see a choppy sideways type of day on Friday. 

There will be a lot of buying from options expiration activities. As long as there is not too much forced selling from margin call we could see a rally with key resistance at 14,400-14,500

Key support is 14,000 for NQ. and NQ needs to stay above 14,000. A break below 14,000 could cause heavy selling

NQ Guideline For Thursday

On Wednesday NQ opened with a small gap-down and then quickly dropped down to support. NQ then spent most of the morning session and lunch period and early afternoon session trading sideways just above support before rocketing back up after the release of the Fed minutes.

In after hours trading NQ has dropped back down to support. at 14,470. If NQ should break below 14,470 the next lower support is at 14,400. If that should break then we could see some heavy selling. 

NQ Guideline For Wednesday

A big opening gap-up for NQ on Tuesday. However, with not many buyers except for the short-covering, the rally was small and very choppy. If there is more shorts that has to cover we could see another rally day for NQ on Wednesday.

Key intraday line-in-the-sand for NQ on Wednesday will be at 14,600, bullish above with the next resistance at 15,000, and bearish below it. with supports at 14,400

NQ Guideline For Tuesday

Following two large down day last week Thursday and Friday, Monday was a sideways consolidation day. 

There is a 50/50 chance that NQ would trade sideways again on Tuesday. Key resistance is 14,400. NQ is bearish below 14,400 and bullish above it, and may cause some short-covering above 14,400 with the next resistance at 14,500.

Intraday line-in-the-sand is 14,250 area, bullish above it, bearish below it

NQ Guideline For Monday

The bond market selloff in anticipation of Fed much faster Fed tightening forced by the high inflation number, triggered a cascade of equity selling which hit the growth stocks in Nasdaq very hard, which fell over 600 points from its day high on Friday.

With NQ breaking below its key support 14,500, NQ would have to trade back decisively above 14,500 to regain its bullish mode. 

If the Fed is not able to push the market up overnight on Sunday night, we could see another large liquidatin selloff on Monday with the next key support at 113,700-13,800 zone..

If or some reason NQ would violate that support zone the next strong support is not until 12,200-12,300 zone.

The Fed would have an unscheduled emergency meeting o Monday. What they would announce at the conclusion of their meeting would determine whether the market would continue to crash or rally back up

NQ intraday line-in-the-sand on Monday will be at 14,325, bullish above it with uits first resistance at 14,400-14,500,and bearish below it with the next support at 13,700-13,800

NQ Guideline For Friday

The stock market sold off very hard on Wednesday night because of the high CPI print. However, some big buy programs came in to buy the big drop at the open and rallied the market up. NQ closed the opening gap before reversing and going back down and break below the opening low.

NQ has been trading lower after on Thursday night. Key support for NQ on Friday will be at 14,500. If NQ should trade below 14,500 on Friday there is a high probability NQ would crash down to retest the low of 13,700.

It is really up to the Fed to calm the market down. Even with Friday tendency to be a choppy non-trending day, if the Fed does not calm the financial market we could see a big drop on Friday.

NQ intraday line-in-the-sand is at 14,750, bullish above it bearish below it.

NQ Guideline For Thursday

A very slow choppy short-covering up-trending day for NQ on Wednesday as the shorts were forced to cover. There is some more room for NQ to run-up before it starts to bump into strong overhead resistance at 15,150-15,200 zone.

With the inflation number to be releases on Thursday that can move market, where the market would trade after the release will be important.. Key inflection price zone for NQ on Thursday will be at 14,970, bullish above it with resistance at 15,150-15,200, bearish below it.with support at 14,820

NQ Guideline For Wednesday

After breaking below prior day long soon after the open on Tuesday NQ quickly reverse and rally, and then close near the high of the day.

At the close of the day on Tuesday NQ remained inside a trading range that has kept NQ boxed in for the last four day. However, in after hours trading NQ has rallied to just below key breakout price level, 14,850. 

Should NQ opens above 14.850 on Wednesday and remains above 14,850, we could see a one-way trending-up day for NQ on Wednesday. If so, the next upside target is at 15,150-15,200, prior low and double-top with January 22nd swing high.

NQ Guideline For Tuesday

A choppy day for NQ on Monday with NQ day low not that far away from support zone, 14,400-=14,500 zone. With overnight trading down to Monday day low, we could see NQ breaks below support on Tuesday or bounce off support.

It seems more likely to break below 14,,400 support and if the internals can become very bearish we could see NQ crashing down below 14,400 with the next stupor at 13,700

Key resistance remains at around 15,000-15,200

NQ Guideline For Monday

NQ traded sideways on Friday  with the close in the middle of the day range, a neutral close, and trading inside a trading range with support at 14,400 and resistance at 15,150.

NQ is now in between 14,500 support and 15,150 resistance. A break below support implies a move down to retest the recent low 13,700. A sustained break above 15,150 should take NQ up to 15,460 resistance.

Key intraday price inflection level for NQ on Monday will be at 14,670, bullish above with the next strong resistance at 15,150, and bearish below it, support is at with first support at 14,400 

NQ Guideline For Friday

On Thursday NQ continued the decline that started from Wednesday high, NQ day low was a retest of prior consolidation high from January 24 and January 26, and the bounce was large.

Employment reports released at 8.30 am could cause a big move in the market. Where NQ opens will be key to determine the direction of the trend for Friday.

Resistance is again at 15,150 and support is at 14,500. With Friday tendency to be choppy sideways trading action, it is likely that NQ would remain inside the 14,500-15,150 trading range.

NQ Guideline For Thursday

NQ traded sideways below strong resistance on Wednesday. However, after hours in globex session NQ have dropped over 300 points from the close.

If there is no bounce before the open, and if NQ sold off after the open, support level starts at 14,640, then 14,550, but strong support is not until 14,500, so there may be some buying coming in starting from 14,640 to 14,500.

The if 14,500 does not hold the decline we could see NQ retesting the recent lows between 13,700-14,000.

NQ Guideline For Wednesday

With all talk and no action by the Fed, NQ rally continued on Tuesday. All major indices also has a very strong rally. 

The Fed has not started to taper, they are still printing 200 billions monthly. As such there is so much liquidity in the system and the market is reflecting this and melting up.

With non-stop money printing (200 billion monthly) and no interest rates increase to be expected the stock market should continue to rally.

Key resistance for NQ on Wednesday will be at 15,150, bullish above with the next resistance at 15,650, bearish below with first support at 14,500.