NQ opened with a huge gap-up into deep overbought zone and then sold off as traders took profit on their long position.
On Wednesday NQ may continue to pullback down, or rally back up again, depending on where it trades in relation to its key intraday inflection price level, 14,335 on the intraday chart., bullish above, bearish below it.
The stock market was engineered higher on Friday ahead of the long holiday weekend and ahead of the debt ceiling shows.
Once the debt ceiling agreement has been decided and agreed upon the stock market is going to crash very fast until the Fed pause their rate hiking cycle and in fact restart QE again.
The Fed is likely to let the stock market collapse quite a bit before restarting QE because of the high inflation, which will sky rocket once the Fed restarts QE
On the intraday basis, 14,330, bullish above it, bearish below it.
A huge gap-up open for NQ on Thursday. The buy programs seems to become very active at night when the trading volume is very low and the market is easy to manipulate..
The stock market is getting pushed higher in anticipation of the agreement on the debt ceiling which needs to be done the 1st of June. The terms of the debt ceiling agreement is going to determine whether or not the rally is going to continue a bit longer, or would the stock market collapse immediately. Anything is possible.
Intraday inflection price level for NQ on Friday is at 14,000. Its Friday as such we could expect a choppy sideways type of day.
A sideways type of day for NQ on Wednesday. However, NQ has now rally about 200 points from the close in overnight trading.
If NQ should open at around the current price level, 13,830, on Thursday we could see some sideways trading action, a pullback-down towards 13,750 price area, usually in a-b-c wave pattern, before rallying back up, as long as the pullback is choppy.
Key intraday support for NQ on Thursday will be at 13,750, bullish above, bearish below it.
NQ pullback down from 14,000 resistance zone, a pullback down day. The pattern of the current pullback would tell us whether or not it is setting a stage for a real breakout above 14,000 resistance or a falsebreakoit, or a no-breakout.
Is it going to be a 1 to 3 day pullback before breaking above 14,000 resistance , or is it something else.
On the intraday basis, key resistance level for NQ on Wednesday is at 13,850, bullish above it, still bearish below it.
Another higher high for NQ on Monday. NQ is now bumping into very strong resistance, a double top resistance with August 2022 swing high at 14,000 .
Some large algos would love to temporarily break above it in a major way, for several days, to trigger short-covering before quickly reversing it back down to cause maximum momentum moves due to trapped breakout traders.
On the intraday basis, key support for NQ on Tuesday will be at 13,8754, bullish above it, resistance is at 14,000
More shorts were forced to cover on Thursday sending NQ upward to near key resistance zone 14,000 area.
It is possible that NQ may just pushes higher to the 14,000 zone before trading sideways as is usual for Friday.
Key intraday inflection price zone for NQ on Friday will be at 13,850, bullish above, bearish below it.
After staying above 13,300 brekout level for five consecutive day a significant number of shorts decided to cover, sending NQ into trending rally mode on Wednesday.
NQ is now in overbought on the daily chart, as such it may need to have a 2 to 3 day pullback coming soon before continuing the rally.
The next resistance and upside target is 14,000. It would likely need a ullback before reaching that target.
Key intraday inflection price level for NQ on Thursday will be at n bullish above it, bearish below it with first support at 13,550support for NQ on Thursday will be at 13,550.
There is really not much happening in the market on Tuesday. NQ can continue to go slightly higher high on a daily basis, but eventually it will end.
On Tuesday NQ continue to trade sideways in a choppy narrow range intraday pattern. The pattern should continue on Wednesday.
Intraday support is now at 13,450, a break could take NQ to lower support at 13,550.
If NQ stays above 13,450, the next upside target is a higher high above Tuesday swing high.
Another slow choppy narrow range day for NQ on Monday. The pattern is going to continue. until key support, 13,000 is clearly violated.
On Tuesday key intraday support is 13,350. The choppy narrow range type of trading pattern is going to continue to frustrate traders.
The pattern will change as soon as the next down leg begins.Key support to break in order to trigger trending trending days is 13,.000.
A sideways trading pattern type of day for NQ on Friday. NQ remained above key breakout price level, 13,300 on Friday. However a lack of buying interest is holding back a fast rally type of day.
The lack of buying is an indication NQ is topping and the next down leg will come soon. Many sellers are still waiting on the sideline until we can see conformation that the downtrend has started.
Key support for that would be at 13,000. NQ would need a sustained break below 13,000 to trigger heavy selling.
On Monday key intraday price level is 13,300, bullish above it and bearish below it.
A very narrow range short-covering rally day for NQ on Thursday. The current rally should continue with NQ trading above 13,350.
The rally could be slow narrow range and choppy or it could be fast and large if enough shorts starts to cover.
As long as NQ remains above 13,350 it should continue to have a bullish bias
NQ finally broke above resistance 13,350, resistance that has been stopping previous attempts for for over a month.
Now that its been violated we could see some short-covering for the next several days as long as NQ remains above 13,350 resistance, now support.
Once the current breakout short-covering has ended, as most weak hand has exited, we should see NQ starts to trend back down.
Key support now is 13,350, and NQ is bullish above it
A very narrow range day for NQ on Tuesday. It looks like a setup for the next down leg but NQ remains inside a trading range, 13,000 support and 13,350 resistance.
We need a clear break to see a good trending moves. Until then NQ should contnue to chop around in a very narrow range.
A very narrow range day for NQ on Monday. NQ is still stuck inside the range between 13,000 to 13,300. It would eventually break out of the range.
Credit continues to contract and should eventually started to drag stock prices down. The questions is just when.
Key support remains at 13,000 and key resistance at 13,300
On the intraday basis, key price level to watch on Tuesday will be at 13,300, acting as support as of the close on Monday.
After dropping down to test support (13,000) on Thursday NQ rallied back to resistance on Friday. NQ remained stuck inside the 13,000-13,3000 trading zone. As such a sustained break out of the zone is going to trigger a sustained trend out of the zone.
On the intraday basis, key price level for NQ on Monday will be at 13,300, bullish above it bearish below it.
For now,we would just have to wait for a sustained break out of the 13,000-13,300 zone to follow the breakout.
NQ traded sideways on Thursday with the low of the day at key support level, 13,000. Going forward, 13,000 price level would continue to be key support.
On Friday if NQ remains above 13,000 we are likely to see sideways trading action again.
Resistance is at 13,165.
NQ continued to trade inside the current trading range between 13,000 to 13,300, and would continue to do so until we get a clear breakout of the zone.
On the longer term timeframe, the daily and the weekly, the pattern is bearish, and the upcoming break should be to the downside.
Key price level for Thursday will remain at 13,000 support and 13,300 resistance.
Ahead of the FOMC decision on Wednesday, NQ simply trade sideways on Tuesday. It is possible NQ may continue to trade sideways on Wednesday.
The market is expecting a 25 basis point rate hike on Wednesday. Whether or not the language of the FOMC decision would be ebough to know the market out of its current trading range, we just have to wait and see.
Key levels for NQ going forwars is 13,000 support and 13,300 resistance.
NQ traded sideways at resistance, still not able to break clear above 13,300 resistance. NQ may continue to trade sideways until the Fed announcement on Wednesday.
The pattern on the daily chart continued to look toppy and should trend down soon, The FOMC announcement on Wednesday could be the trigger for NQ to starts trending again.
On the intraday timeframe, I am not expecting too much movement away from current balance zone from 13,300 key price level.
