The Fed continue to push the stock market higher to forced more short to cover to help reduce the chances of uncontrolled credit crunch
Short-covering should continue as long as NQ remains above above 12,000. Next resistance is 13,000.
Intraday inflection price level for NQ on Friday is at 12,700.
A huge gap-up open for NQ on Wednesday to force the shorts to cover and then another huge buy programs was triggered after the FOMC announced their policy decision which might have caused more shorts to cover.
Will there be more buying after such a large engineered rally, only time will tell. On the intraday price level, key inflection price level for NQ for Thursday trading would be around 12,470, bullish above it, bearish below it.
Monday was the second pullback down days for NQ. Key support on the daily time-frame is 12,200. As long as NQ can stay above 12,200 the rally should continue after a brief pullback.
Should 12,200 support is violated, the trend will turn back to bearish, and the sell-off should be fast.
The FOMC will hold a 2-day meeting starting on Tuesday. I don't exp-ect the market to make a major move until the FOMC announcement on Wednesday.
However, anything is possible, watch the support level off 12,200 as key line-in-the-sand going forward.
Another up day for NQ on Thursday. The next resistance is at 12,850 with or without a pullback day.
The speed of this current short-covering rally looks so strong that it seems set to rally to the next major resistance zone between 13,000-13,300.
With Friday tendency to trade sideways, tomorrow may be the day we see NQ pullback and trade sideways.
Pullback supports are 12,500 and then 12,375
NQ continued to rally on Wednesdat but it has hit quite a strong resistance at 12,500 and may need to pullback down before breaking through 12,500 to the next resistance at 13,000.
Key inraday price level for NQ on Thursday will be at 12,500, bullish above it, the next resistance is 13,000 and bearish below it with first support at 12,200.
NQ needs to stay above 12,200 to keep the rally alive. Breaking below 12,200 support zone is bearish. So on any decline we want to see 12,200 support hold for us to remain bullish.
A trend up day for NQ on Tuesday. At the end of the day NQ was in overbought zone on the short term 5-minute time frame, and may need to pullback down before continuing its uptrend.
Key intraday support for NQ on Wednesday will be at 12,200.
If NQ can stay above 12,200 on Wednesday the rally should continue, with the next resistance at 12,500 with the next higher resistance at 13,000. NQ could have
On Monday NQ opened with a gap-up, to complete its wave 5 rally from the July 14th swing low. It was a typical wave 5 gap, a gap-reversal.
NQ high of the day was just shy of its 12,200 resistance. Profit-taking and new selling caused NQ to drop down to 11,850 support zone.
11,850 will be support for tomorrow with first resistance at 12,000. Failure to stay above 11,850 is likely to trigger more selling with potential support at 11,700 then 11,500.
NQ traded sideways on Friday. Looking at the pattern on the 5-minute chart, NQ has a very clear five wave pattern up when looking at it from Thursday July 14th swing low.
And Friday was wave 5 trading pattern on the 5-minute chart. Wave 5 rally may or may not have ended. Thus key price level we can watch on Monday will be at 12,000.
If wave 5 rally has ended, NQ should break back below 12,000. If NQ remains above 12,000, it is an indication wave 5 is in progress. If so it can continue higher, with the next resistance at 12,200.
Breaking back below 12,000 implies a pullback, first support is 11,850.
11,500 remains a very strong support level. On Wednesday NQ opened with a huge gap-down to just above 11,500 and then bounced very sharply.
It seems that the market may be waiting for reports before the the next leg down on the current bear market resumes.
For Thursday key price level to watch is at 11,700 support and 11,850 resistance. A clear breakout of the 11,700- 11,850 zone is likely to trigger a move to the next level.
Next resistance is at 12,000, and the next support is at 11,500
A down day for NQ on Tuesday.It started the day with a gap-up open, then after a brief rally reversed back down and then trend down all day with a long consolidation before the end of day down trend came in.
NQ dropped down to support and was in oversold zone on the intraday five minutes time-frame near the close.
Key intraday inflection price level for NQ is at 11,850, bullish above, bearish below it. NQ down need to open with a gap-down below 11,600 and then tanked down hard to cause a trending down day.
On Monday NQ opened with a huge gap-down then after quickly dropping down to support, simply trade sideways into the close, setting up for another gap-down open that may cause a trending-down day.
Key price level to watch for on Tuesday will; be at 12,000 resistance, and 11,850 and 11,750 support.
Trading above 12,000 may cause enogh short-covering to cause NQ to rally to break above 12,200 swing high.
Trading below 11,850 is bearish with the next key support at 11,750. NQ would need to break below 11,750 to cause a trending-down day.
After three large up day in a row NQ finally pause and trade sideways on Friday, setting up a large decline on Monday or another large up day on Monday
Key support on Monday will be at 12,000. NQ would need to break below 12,000 to generate a large down move. Failure to break below 12,000 implies another sideways price action day or a continuation of the uptrend.
Resistance is 12,200. A sustained break above 12,200 could trigger another round of short-covering.
Another trend-up day for NQ on Thursday as the shorts continued to get squeezed. NQ has now starting to bump into strong resistance, 12,200 as double-top, 12n300 as prior swing low now resistance, and 12,500 as prior consolidation low.
Any of the above resistance could cause a large drop in NQ from profit-taking and new rounds of selling. However, as long as support is not violated the short-covering rally could continue.
Key support level for NQ on Friday will be at 12,000. With Friday tendency to trade sideways we could see NQ trade between 12, 00 and 12,200.
Important employment reports to be released before the market open on Friday could change the above analysis.
Another up day for NQ on Wednesday. NQ high of the day was just below key 12,000 resistance level which was sold quite hard at the end of the day.
Key inflection price level for NQ on Thursday will be at 11,850, with first resistance at 12,000, and first support at 11,750
As mentioned in my blog yesterday NQ is in a bullish technical pattern on the daily chart. Then on Tuesday NQ opened with a huge gap-down to support, 11,400, but was not able to tanked below support, as a result the shorts covered which sent NQ rocketing up all day.
At the end of the dau on Tuesday NQ was hitting resistance and in overbought price zone on the 5-minute time frame. As such it should not surprise us to see some p[pullbacks before rallying back up again.
The next key resistance for NQ will be at 12,000 ares. If NQ could not break above 12,000 we could see heavy selling coming in again.
A sustained break above 12,000 implies NQ is likely to rally up to 12,500 and then 13,000.
Key intraday support for NQ is at 12,580
A sideways non-trending day for NQ on Friday last week. At the end of the day the short-term technical pattern for NQ is bullish and looks ready to rally on Tuesday.
However, for the rally to materialise, NQ would need to stay above 11,550, which will be key inflection price level for NQ on Tuesday. If so the next upside target for NQ is at 11,750
If NQ should trade back below 11,550, that is an indication NQ is bearish.h below 11,550.
