NQ traded sideways on Tuesday between resistance at 12,800 and support at 12,500, a 300 points trading range. At the end of the day the range had narrowed to 12,600-12,800.
Key trading range for Wednesday will be between 12,600 support and 12,800 resistance. A break below 12,600 could cause a sharp selling, especially if NQ should break below 12,500.
Staying above 12,600 is likely to keep NQ in the trading range, 12,600-12,800.
NQ pullback high on Thursday was at its 20-ma on the daily chart. Since then, under very low volume globex session, buy programs has continued to push NQ higher.
NQ is now trading above its 20-ma on the daily chart, and also above its key resistance at 12,600, a key inflection price level on Tuesday.
When regular trading environment returns on Tuesday we shall see how and where NQ would trade in relation to its key inflection price, 12,600, bullish above it, bearish below it.
A trend-up short-covering day for NQ on Thursday as traders went home for the long weekend holiday. With most traders out of the market on holiday until Tuesday we could see choppy narrow range price action on short day Friday.
Key support is 12,125, resistance is 12,600-22,700. Needs a clear break out of the range to trend
Another choppy sideways trading pattern for NQ on Wednesday. 12,050 - 12,125 continued to be a strong resistance zone for NQ to break.
On Thursday 12,050-12,125 should remain to be key resistance zone. Failure to break above the resistance zone could starts to attract short-sellers into the market that could then tank NQ back down to a new lower low.
A clear and sustained break above 12,125 could trigger another round of short-covering. If so, the next resistance zone ia at around 12,550 - 12,700
NQ Opened with a gap-down on Tuesday, then after a brief decline, NQ rallied back to morning high, a sideways type of day.
On Wednesday key inflection price level will be at 11,800, bullish above it, resistances are 11,950, then 12,070-12,125.
Bearish below it,
With QT starting net week, June 01, anything is possible. The market is in oversold condition, but with the Fed draining liquidity from the market, the market may not get its oversold bounce. It may just continue to drop and drop.
Watch key levels, 12,500 for NQ, the last pullback high, and technical trailing stop-losses congregates just above that level.
On Monday NQ had a follow-up rally from Frioday low, and it closed at the high of the day, a trending up day for NQ on Monday. Overnight on Monday night, NQ is already trading down to near the day low on Monday.
Key price level for NQ on Tuesday will be 11,850, the 200-ma on the 5-minute chart.
Trading below 11,850 implies bearish day with the next downside target below Friday low. Whether or not NQ would breach that on Tuesday only time will tell.
Trading above 11,850 implies choppy sideways price pattern. NQ needs to trade above 12,125 to trigger more short-covering.
Friday was a typical day for Friday, downtrend in the morning, and uptrend in the afternoon, a sideways type of day.
Key inflection price level for NQ on Monday will be at 11,856, bullish above it with the first resistance at 12,070-=12,125,
And bearish below it, first support is at 11,650-11,700
A choppy sideways consolidation day for NQ on Thursday following a large down day on Wednesday. With Friday tendency to be choppy and sideways sideways type of day, we could see another choppy day on Friday, especially if it stays inside the range.
Choppy range on Friday will be from 11,850 - 12,125, key support is 11,850 and key resistance is 12,125
Breaking out of the range, especially below support, could cause massive decline, trending down day.
After three pullback rally days NQ resumed its downtrend on day 4. NQ sold off very hard.on Wednesday.
Following a large down day on Wednesday we could see NQ trading sideways on Thursday consolidating the large trending down day. To do so NQ would need to stay above Wednesday low. If so, NQ first resistance is 11,980, 12,125 and 12,226.
Trading below Wednesday low could cause NQ to trend down for the second day in a row, with key support at 11,700 double-bottom support..
A break below 11,700 is very bearish.
Tuesday was the 3rd pullback day for NQ. The pullback still has more room to the upside before it starts to run into resistance at 12,700-12,850.
12,500 will be a good price inflection zone, bullish and more rally if NQ can remain above 12,500, with the next upside target at 12,700 and then 12,850. and 13,000.
Trading below 12,500 implies a further drop to 12,400, line-in-the-sand. then 12,200.
Another sideways consolidation pattern for NQ on Monday, the second consolidation pattern in a row.
NQ could continue to pullback up for another day, for the third day on Tuesday. To do so NQ would have to stay above key support level at 12,225
Key intrday resistance is at 12,300. NQ could rally if it can stay above 12,300, with the next resistance at 12,500.
On Friday, the market opened with a gap-up and pushed up above key resistance at 12,250 for NQ, which forced the shorts to cover. NQ quickly spiked to just below the next resistance before trading sideways until into the closing period.
NQ intraday resistance for Monday is at 12,500 and support at 12,125.. Above 12,500 should trigger more short-covering with the next higher resistance levels at 12,700 and then 12,800. Trading below 12,125 support could tank NQ down to 11,700 support.
Staying inside the 12,125-12,500 trading range would imply a sideways consolidation pattern.
Following a large trend-down day on Wednesday NQ traded sideways in a consolidation pattern on Thursday.
With NQ in oversold zone on the daily chart on Thursday it is possible we could see a trend up short-covering day on Friday, However, with so much selling pressure in the market we could see a possible sideways market or a down-trending market.
Key inflection price zone for NQ on Friday will be at 11,825, with key resistance at 12,125, then 12,500. NQ is berish below 11,825.
After consolidating sideways in the morning on Wednesday NQ eventually resume its downtrend. NQ continued to crash below strong support, an indication there are lots of selling.
The market is in oversold zone, even so, there is so much liquidation selling going on that the market can continue to get more oversold.
Key intraday price level for NQ on Thursday will be at 12,150. NQ is in extreme bearish mode below 12,150.
Trading back above 12,150 would reduce sone selling pressure. Resistances are 12,300 then 12,550.
After a trending down day for NQ on Monday, NQ consolidated and trade sideways on Tuesday, down in the morning, then rally during lunch and then down again in the afternoon into the close.
NQ closed in the middle of the day range on Tuesday, a neutral close, awaiting the CPI reports on Wednesday. A reports that could move NQ to the next level, upward or downward.
Key level to watch on Wednesday will be at 12,150 support and 12,550 resistance. If NQ should break out of the 12,150-12,550 range, look for either a trending break (up or down), or a fast false-break reversal
After trading sideways on Friday, NQ opened with a gap-down and then trend down all day on Monday, a down trending day for NQ.
Monday was the third consecutive down day for NQ, and it is possible NQ may need to consolidate the large 3-day drop on Tuesday. However, to do so, NQ would need to trade above 12,300, key intraday line-in-the-sand level for NQ on Tuesday.
Trading above 12,300 could cause a profit-taking and short-covering rally on Tuesday with resistances around 12,700-12,850 zone.
Trading back below 12,300 is likely for trigger another trend down day, particularly if NQ can break and stay below Monday's swing low., with 11,800 as potential support level.
Following a large down-trending day on Thursday NQ consolidate the sell-off on Friday, trading just sideways all day long.
NQ may be ready to trend again on Monday, and the direction of the trend wil depends trades in relation to its key intraday line-in-he-sand, which on Monday will be at 12,700.
Staying above 12,700 should reduce the selling pressure. If so, we could see NQ rallying up to 12,900-13,00 resistance zone.
Below 13,700 NQ is bearish but it needs a sustained break below Fridy low to trigger another round of heavy selling.
A huge down day for NQ on Thursday. Whether or not NQ may need to pause to consolidate the sell-off after a huge Thursday sell-off, we just have to see.
NQ may pause and consolidate the huge decline, or simply trend down again just like so many recent Fridays.
Key price level for NQ on Friday will be at 12,700. Sideways consolidation or huge rally if NQ can stay above 12,700, or large sell-off if NQ should break below 12,700 and stay below it. Next lower support is 12,000
Now that the Fed meeting is out of the way the market can now trend for a while. It seems that because the market was primed for a very hawkish Fed, and when the Fed announcement was not very hawkish the shorts started to cover, rocketing the market into key resistance, 13,500.
It seems likely the market is going to continue to rally into the weekend due to short-covering with so many shorts trapped and has to cover if the market continue to go higher.. However, the the short-covering is completed we could see the resumption of the bear market.
Thus, key price level for NQ on Thursday will be at 13,500 resistance, which will serve as key line-in-the-sand for NQ on Thursday.
If NQ can stay above 13,500 after the open on Thursday we could easily see short-covering rally that can rocket NQ up to the next resistance at 13,800 area.
If, for whatever reason, NQ should sell-off on Thursday, supports are between 13,200-13,250
The Fed may walk back their Wednesday comment, if so, sell-off may resume right away.
It's a very important and market-moving FOMC decision day on Wednesday. The very important information to read from the Fed on Wednesday will be the following:
1. How much will the Fed raise it key short-term Fed fund interest rate., and what are they planning to do for the rest of the year, how much increase and how fast..
2. Will the Fed finally announce the starts of QT, or will the Fed just talk to bluff the market participants. This is very important going forward.
A not so hawkish Fed will rocket the stock market, which should also rocket inflation, precious metals, bonds, commodities and cryptos
For NQ, key price level to watch for will be 13,250 for breakout to the upside, and 12,800 for key support for a break to the downside.
The reaction to the Fed decision on Wednesday should cause the market to trend upward, or downward for the next one to two weeks.
After making a lower low NQ finally rallied from oversold condition starting late afternoon as traders and investors took profit ahead of the FOMC policy announcement on Wednesday..
The market may remain volatile and non-trending as traders and investors took may wait for the FOMC decision to take their trading and investment decision.
Key intraday line-in-the-sand for NQ will be at 13,060, bullish above, with resistances at 13,250 and 13,525, bearish below it with key support at Monday swing low, 12,708
NQ trend down all day on Friday with several pullback along the way down. It was a very large down day with NQ dropping down to oversold zone on the 5-minute chart at the end of the day..
With NQ bouncing off from the oversold low at the end of the day, it is possible that NQ could continue its bounce in the morning before resuming the downtrend, that is, as long as the pullback bounce does not break back above key inflection price level, which on Monday will be at 13,000-13,050 zone.
Breaking back above 13,050 is an indication that NQ is likely to continue to rally up to 13,175-13,250 zone.
On the other hand, if NQ should drop below 12,800 we could see massive liquidation decline, with the next downside support at 12,390 then 12,000.
