On Thursday NQ opened with a gap-up above 13,000 key line-in-the-sand on the daily chart.
After coming back down to re-test 13,000 broken resistance turned support, NQ then rallied and close near the day high, setting up a highly likely short-covering rally day..
If NQ could stay above 13,000 it would start to squeeze the shorts, and could start to rally quite quickly, with the next upside target at 13,350 to 13,500.
On Wednesday, NQ opened with a huge gap-up There was still not much buying so NQ end up with a trend up day with a narrow range, mostly from short-covering..
The high of the day was at key resistance of 13,000, which is now key inflection price level.
If NQ could break and stay above 13,000 we could start to see some shorts get forced to cover. If so, it should start o pusg higher.
Then after breaking above some price level, the short-covering sould intensify and thus may start to trigger a fast rally.
If NQ is not able to break above 13,000 in a sustained fashion, sellers could start to become aggressive which would push NQ back down to support, 12,850
The stock market remains stuck inside a trading zone between 13,000 resistance and 12,12,200 support because the Fed is doing massive QE to counteract a contracting liquidity from global banking crisis.
Key intraday price level for NQ on Wednesday will be at 12,780, bullish above it, and bearish below it.
A sideways trading action for NQ on Monday. the 5th consecutive day inside a narrow trading range between 12,670 support and 13,000 resistance.
On the daily chart NQ looks ready to drop down towards support 12,500, and it is going to do so on a break below 12,670 support.A break above 13,000 implies NQ is going towards a higher high.
A sideways trading action for NQ on Friday,
On the daily chart NQ is currently trading just below key resistance price level, 13,000, which if NQ can break above and stay above it could trigger some short-covering and some buying activities, which could propel NQ higher to the next resistance at 14,000.
Failure to break, or failure to stay above it if broken, will cause a massive reversal back down to support, 12,300.
On the intraday time-frame, key inflection for NQ on Monday will be at 12,850, with first support at 12,730, and first resistance at 13,000.
On Thursday NQ came back to re-test prior day high and then traded back down. It was a sideways type of day. On the daily chart, NQ looks like it is setting up atopping pattern.
However, with Friday tendency to trade sideways, we could also see another sideways trading action on Fridat before it come down next week
On the intraday timeframe, inflection price level is at 12,885, bullish above, bearish below
The stock market tried to rally after the FOMC decision was announced on Wednesday. However, the rally quickly faded and sold off into the close, displaying a bearish engulfing candle on the daily chart.
The reversal candle is negated only on a break-back above Wednesday swing high, 13,080, on a close above it.
The reversal was after a false-breakout; As such, breakout traders are now trapped and if NQ continue to decline, the decline can get out of control as the bulls get run-over.
Key intraday inflection price level for Thursday will be at 12,820, bullish above it, bearish below it.
Aster the morning pullback down to support NQ rallied and finished the day with a close near the high of the day.
Key resistance level for NQ is at 13,000, a break with a close abpove it could rocket to 14,000 very quickly as the shorts would panic cover.
Failure to break above 13,000 could cause a big drop down to support at 12,400 and then at 12,200
A very narrow trading range for NQ on Monday as most traders and investors are still waiting for the Fed announcement on Wednesday.
Key NQ support remains at 12,600 and resistance at 12,820.
A sideways consolidation trading pattern for NQ on Friday. As such, on Monday we could see either a resumption of rally, or a deeper pullback down to lower support depending on where NQ would trade on Monday soon after the open in relation to key inflection price level.
For NQ on Monday that inflection price leve;l will be at 12,600,bullish above it and bearish below it, with lower support at 12,400.
The FOMC will meet on Tuesday and Wednesday. The market could become unpredictable as we get closer to the Fed announcement.
A trending up day for NQ on Thursday. With such massive QE by the Fed, 300 billion just to bail out the banks, the rally should continue as buyers piled in to buy and the shorts are forced to exit. The next upside target for NQ is 13,000.
On the intraday basis, NQ could continue to rally to 13,000, or trade sideways in consolidation pattern if the longs decided to take profit ahead of the weekend.
Key support is 12,590.
The Fed bank bailout program triggers a risk-on sentiment, and squeezes the shorts. The rally may continue as long as the Fed does not again change its mind about bank bailout.
Key price level for NQ trend on the daily timeframe is at 12,300 as resistance and 11,800 as key support. A break above 12,300 could trigger a short-covering rally with the first upside target at 13,500.
A break below 11,800 on the other hand is an indication the counter-trend rally has ended, even with the Fed bailout programs, and an indication the bear market has resumed.
On the intraday basis, key intraday support for NQ on Wednesday will be at 12,200, bullish above it with the next upside target at 12,500 and bearish below it.
The Fed came to the rescue of the banking system on Monday, a massive bailout of the banks in order to avoid contagion. As a result, the market had a decent rally, but it is not over. As such we can expect the unexpected at anytime,
Key intraday inflection price level for NQ on Tuesday will be at 12,100. But it does not matter much until the market stabilises.
Key resistance is at 12,200, and if NQ can break above and stay above it we could see short-covering rally.
Key support is at 11,800, we could see massive selling if NQ trades below it as margin call starts to kick in.
The stock market sold off hard again on Friday as fear of contagion from Silicon Valley Bay (SVB) collapse scared investors.
The effect is not over, and we could continue to0 see volatility next week. Unless The Fed change their policy and cut interest rates and or reverse QT and restarts QE we could see more sell-offs next week.
Key event will be what the Fed will do, if any, to stability the banking liquidity problems.
On the intraday time frame key inflection price level for NQ on Monday would be at 12,030, bullish above it with resistances at 12,110 and then 12,200, acting as key resistance.
Bearish below 12,030, with supports at 11,800, a price level that will be broken of the Fed does not do anything to stabilise the market.
Wednesday was the 3rd pullback-down day and it was supposed to be a big rally day, but instead, it was a very narrow range sideways trading pattern, as such, it needed Thursday to be a very big up-trending day.
NQ opened on Thursday and immediately rally, setting up for a bullish day. However the rally fizzled very quickly, nd then reversed down, trapping many buyers who eventually had to exit, causing huge sell-off that lasted all afternoon.
It was a bearish close, but with the stock market on deep oversold on the short-term intraday time frame, we could see a consolidation day on Friday.
Key support on the daily chart is 11,800 and should provide a very strong support level. If that is violated, we could see panic selling.
It was such a choppy and narrow trading range for NQ on Wednesday
NQ should have rallied in a big way because Wednesday was the 3rd pull-back down day after it bounce off strong support at 11,850 support zone.
NQ therefore needs to rally in a big way very soon if it is going to trend back up again. Failure to do so will start to attrach sellers that would then tank it hard.
Key intraday inflection price level for NQ on Thursday will be at 12,200, bullish above it and ebarish below it,
Key resistance at 12,300.
A down day for NQ on Tuesday, the 2nd down day in a row. That makes Wednesday the 3rd day, to rally, or to continue down to lower support.
Depending on where NQ trades in the morning on Wednesday NQ could either continue down to the lower supports or rally back up.
Key inflection price level for NQ on Wednesday is at 12,200, bullish above it with the next resistance at 13,000, and bearish below it with the first support at 12,050 and then at 11,800.
On Monday NQ opened and quickly rallied to resistance, 12,500 area before profit taking and resistance selling came in to sell which caused NQ to drop back down to support, which is the Friday's swing high of 12,300 area.
On Tuesday, key support for NQ will be at 12,300, bullish above, bearish below it.
On Tuesday, depending on where NQ trades in the morning in relation to 12,300, we could see a rally to re-test 12,500 resistance, and stays inside the 12,300-12,500 trading range.
Or, if NQ trades below 12,300 in the morning and then able to drop down below 12,270, we could see NQ dropping back down towards 12,050 support.
On Friday the bounce from major support zone continued with Friday as the second consecutive up-trending day in a row.
On Monday, depending on where NQ trades at, we could see NQ rally to continue to the next resistance, 12,500, right away, and then pull-back down to support, 12,260,
Or NQ may consolidate before rallying back up to resistance, 12,500, as long as consolidation does not get too deep.
Key inflection price level for NQ on Monday will be at 12,250, As long as NQ does not clearly violated 12,250 during consolidation a rally to 12,500 is still very likely.
Trading below 12,250 implies NQ is in consolidation mode.
On Thursday NQ opened with a huge gap-down to strong support and then immediately rallied. NQ traded for for almost 3.5 hours below strong intraday resistance before it breaks and triggered a short-covering rally that lasted into the close.
Key intraday inflection price level for Friday will be at 12,000, bullish above bearish below it.
On Thursday, the trend on the daily chart time frame remains down below 12,050. As such rallies is to be sold at resistances.
The next downside target for NQ is at 11,700-11,800, strong support on the daily chart from prior swing highs and 50-day moving average support combined with slight oversold condition on the daily chart.
On the 5-minute intraday chart, key inflection price level for NQ on Thursday will be at 11,980, bullish above with resistance at 12,050, and bearish below it with the next support at 11,700-11,800
