Another sideways trading pattern for NQ on Thursday. Ahead of the long 4th of July holiday weekend we could see a real strong rally if the shorts decide to cover.
T so NQ would need to break clear above 14,130 and then above 15,200 which would have the potential to trigger short-covering.
Failure to do so could lead to another sideways day as Friday tends to have a sideways pattern.
NQ traded sideways on Wednesday. As such we could see a trending day on Thursday, the direction will depends on where it trades in relation to its intra-day inflection price level.
For Thursday NQ inflection price level is at 15,130, bullish above it, with first resistance at Wednesday's high 15,220, and bearish below it with first support at 15,000.
After dropping down to strong support at 14,850 on Monday NQ rallied all day on Tuesday with the high of the day at key resistance of 15,140.,
15,140 will be key resistance on Wednesday, bullish above it withe next resistance at next 15,325, and bearish below it, with the next support at 15,000
A down day for NQ on Monday. The low of the day was at 14,850 support level. The next lower support is at 14,800
NQ may want to trade sideways on Tuesday. If so NQ should stay above 14,800 support and then rally above 14,925 inflection price level for Tuesday.
Trading below 14,800 is going to run over more trailing stop-loss and could cause a big drop down to lower support at 14,480 and then at 14,230.
A sideways trading action for NQ on Friday, the usual Friday trading pattern.
On Monday key inflection price level is at 15,150, bullish above it bearish below it.
Support is at 14,800-14,850
A rally day for NQ on Thursday after opening with a gap-down. What happen on Friday will depend on where NQ trades in relation to its key intraday inflection price level.
For NQ on Friday that level will be at 15,140, bullish above it with the next resistance at 15,325, and bearish below it with the next support at 14, 870
With Friday tendency to trade sideways, if bullish, NQ may trade between 15,140 to 15,325, and if bearish, NQ ay trade between 15,140 and 14,970, but strong support is not until 14,870.
A pullback-down day for NQ on Wednesday, with the close near the day low.
A the end of the day NQ looks ready to drop down lower to its next support at 14,877, previous swing high now support.
NQ would have to trade back and stay above 15,130 to be on the bullish bias again.
Intraday inflection price level is 15,080.
A sideways action for NQ on Tuesday, with a neutral close. A such, NQ can go either way on Wednesday, with key resistance at 15,330, and key support at 15,125.
Key inflection price level will be at 15,225, bullish above it bearish below it.
The US financial market was closed on Monday, a new holiday, Thus the forcast for Tuesday would be the same as for Monday
Key inflection price level for NQ will be at 15,300, bullish above it, bearish below it, implies larger pullback in progress, with downside target at 15,120.
Trading below it is an indication NQ is going into a larger pullback down move.
Following Wednesday's consolidaion NQ had a trending-up day on Tursday as the shorts continmueed to get squeezed.
Tomorrow Friday is likely a sideways type of day. NQ has rallied to fast and in very overbought zone, vulnerable to sharp sell-off corrections.
Key inflection price level for NQ on Friday will be at 15,355 with first resistance at Thursday high, and first support at 15,215
The Fed did not raise its short term interest rat on Wednesday, qand promised to not cut interest rate for at least two years.
The Fed is stuck between two bad options. Iyt needs to keep raising interest rate to prevent the dollar collapse. However, keeping interest rates high would kill the US economy. The pain from collapsing US dollar which will take the G7 currencies with it would be far greater.
As such, we can expect the Fed to keep raising its Fed Fund rate in the future
For now, the stock market may be in its final stage of short-covering, and it should end soon.
Key intraday support for NQ on Thursday will be at 14,975, bullish above it, bearish below it.
NQ traded sideways on Tuesday. As such we should see a trending-up day on Wednesday. To do so, NQ would need to stay above Tuesday high
If that is not the case we could see sharp pullback down move. If so we would have to see NQ trading below support at 14,965
A trend-up day for NQ on Monday. Normally following a trending day we would get a sideways consolidation day.
Next upside target is 15,050, first support is 14,870.
The current uptrend is nearing the end, but for now, as long as NQ stayes above 14,000, bulls are in control. NQ is in currently overbought zone on the daily chart, and could starts to get a larger decline as many traders starts to take profit.
A sideways trading pattern for NQ on Friday, a setup for the next rally day or a trend down day.
The direction of the move will depends on where NQ trades in relation to its key intraday inflection price level, 14,690 for NQ on Monday.
Bullish above 14,690 with the first resistance is 14,870 and bearish below it with the first support at 14,690.
