It was a down day for NQ on Wednesday, even as NQ continued to trade above strong support at 12,200 area.
Key support is now at 12,250. As long as NQ remains above 12,250 NQ could continue to trade sideways or rally if the shorts decided to take profit and cover their shorts.
The price action from Tuesday and Wednesday is indicating an imminent break below 12,500 support zone. If so, and if NQ can get a sustained break below 12,250 we could see a rush of heavy selling.
The downtrend continued on Tuesday with a sharp decline in the morning that was follwoed by a late day bounce.
12,200 is a very strong support. The shorts took profit just above support. Wednesday could be a consolidation day unless NQ can crash below 12,200.
Key price level for NQ on Wednesday would be at 12,450 as resistance, and 12,200 as support. If NW should break above 12,450 and can stay above it, we could see NQ rally to 12,600
Breaking below 12,200 is very bearish and could attract heavy selling.
Following a hu8ge down day last week Friday NQ traded sideways consolidating all the selling that occurred on Friday. The downtrend is likely to continue with a trending down day on Tuesday. To do so NQ would need to trade below Monday swing low.
There were strong support at Mondays swing low, the 50% retracements of the rally from June 16th to August 16th high, and the 50-day moving average on the daily chart.
Another strong support comes in at around 12,200, which has the potential to cause a pause on the current decline. However, a break below 12,400 could come with heavy selling that could easily slice through 12,200 support.
Key intraday inflection price level for NQ on Tuesday will be at 12,600, bullish above it and bearish below it.
At the Jackson hole conference which started on Friday last week, Jerome Powell confirmed that the Fed is going to continue their hawkish policy despite weakening economu, spooked the market. NQ sold off hard on Friday.
The sell-off should continue on this coming week. Monday could be a consolidation day, but if selling pressure gets too intense, selling should continue on Monday
The next major support for NQ is 12,200, prior swing high from June and July. The 12,200 level may cause a bounce. However, if selling gets too intense, we could also see NQ crashing below that support zone without pausing.
Should 12,200 gets broken we could see massive margin sellingthat could tank NQ down to below the June low.
NQ managed to rally on Thursday as the shorts take profit and cover ahead of the Fed annual Jackson hole meeting this weekend.
If the rally is choppy it should then be followed by a sharp drop that will break below 12,850.
NQ traded sideways on Wednesday, the second consecutive consolidation day following several days of large decline
Thursday will be the third day for NQ and it either continue top trade sideways above 12,850 support or breakdown below it, or it mat rally if the shorts decide to take profit and cover their short.
Key level to watch on the NQ on Thursday will be at 12,950, bullish above, with the next resistance at 13,100 and bearish below it.
On Tuesday NQ traded sideways above key support 12,850 and at the end of the day it looks ready to crash below it, and it could occur on Wednesday.
Key support is 12,850 and key resistance is 12,950. A sustained break out of the the 12,850-12,950 could cause a large trending move, especially if the break is to the downside.
A pullback down day for NQ on Wednesday. Whether or not this is going to turn into a 2 to 3 pullback day will depends on the strength of the current short-covering rally.
I am still expecting a 2 to 3 pullback down day followed by a push to higher high, 14,000 or so before topping and rolling over to resume its bear market.
Key intraday inflection price level for NQ on Thursday will be at 13,500, bullish above it, and bearish below it.
Ahead of the release of the FOMC minutes the market traded sideways on Tuesday. And may continue to do so until the minutes if released.
Key intraday inflection price on Wednesday will be at 13,600, bullish above, bearish below it.
Another narrow-range rally day for NQ on Monday. The next upside target remains at 14,000. Support is at 13,550.
A narrow-range trend up day for NQ on Friday. At the end of the day NQ was in overbought zone on the 5-minute timeframe and may need to pullback down before rallying back up again. The upside target for the current rally is 14,000.
Key support on any intraday pullback on Monday will be at 13,430. If NQ can stay above 13,430 zone then NQ should continue to rally on Monday.
Thursday was a bearish reversal down day. Friday tends to be a sideways consolidation day, and depending on where NQ opens on Friday we could see another pullback down day or a bullish day.
Key inflection price level for NQ on Friday will be at 13,380, bullish above and bearish below it.
Support is at 13,100, and resistance is at 13,550-13,600 zone.
After just two pullback-down day NQ opened with a huge gap-up on Wednesday and then basically trade sideways for the rest of the day.
The upside target for the current short-covering rally is still at 14,000 before the rally run out of momentum..
Depending on where NQ would open and trade on Thursday, we cou;d see another up day as thes short-sellers continue to be forced to cover.
Key intraday inflection prce level on Thursday will be at 13,350, bullish above, and bearish below.
A down day for NQ on Tuesday, the second pullback down day on a row. The last pullback had a three down days in a row before the uptrend resumed. Will we get a three pullback down days this time around, will depends on where NQ trades on Wednesday.
Key intraday inflection price level for NQ on Wednesday will be at 13,100, bullish above it, and bearish below it with potential support at 12,900, then at 12,700.
Monday was the 3rd consecutive pullback days for NQ on this current uptrend on the daily time frame. . As such NQ should resume its uptrend on Tuesday.
Failure to do so is an indication NQ is going into a deeper pullback down move before the uptrend resumes.
Key support for NQ on Tuesday will be at 13,100., bullish above, and bearish below it. A break below 13,100 implies a potential pullback-down move to the next support zone, 12,700.before resuming its uptrend.
NQ traded sideways on Thursday and Friday last week, setting up for another trending up day. Key support for the current consolidation is at 13,100.
If NQ can stay above 13,100 on the current pullback then we know the short-covering is still very intense, and that NQ should resume its uptrend soon.
However, breaking below 13,100 is an indication NQ is going to pullback further down before rallying back up again. The next support below 13,100 is at 12,700.
The current short-covering bear market rally may last until the end of August. It should then be followed by relentless sell-off into the end of the year.
After just two very narrow range consolidation days NQ exploded higher on Wednesday. The short-squeezed is starting to get extreme and could get more intense as the remaining shorts starts to capitulate.
The next resistance level is 13,500 but with such extreme short-covering NQ may just break above such resistance without a pullback.
On Tuesday NQ traded sideways in a narrow range for the second consecutive days in a row.
On the daily time frame, NQ is in overbought zone and may need some sideways action or pullback down move before rallying back up again.
Key line-in-the-sand for NQ on Wednesday will be at 12,970, bullish above with first resistance at 13,100, and bearish below it supports are 12,900 then 12,700
