Attempted breakout above trading range resistance, 21,550 failed to trigger short-covering as NQ sold off and dropped back down inside the range, a bearish sign, likely indicating the top for the current rally might be in.
Friday is not usually a breakout day, as such we could expect NQ to stay inside the range, 21,000 to 21,550
Intraday inflection price level for NQ on Friday will be at 21,450, with 21,550 resistance and 21,200 support
The stock market traded sideways on Wednesday consolidating the huge rally on Tuesday.
The stock market has rallied sharply in overnight trading after the court made a decision that Trump tariff is not legal and must be stopped immediately, as Trump does not have to authority to impose tariff.
In addition, The Fed has started to accelerate pure money printing as there are very few buyer of US new debt issuance.
A combination of massive money printing and tariff halt triggers massive short-covering rally .
For NQ it has traded over 400 points in overnight trading. If it continues into the open we could easily see NQ rallying over 1,000 points as short get forced to cover.
Key Resistance for NQ will be at double-top, 22,500.
A gap-uup and trend up day for NQ on Tuesday as the shorts were forced to cover.
With NQ high nearing key resistance level around 21,570, and an overbought condition on the 60-minute chart, we could see NQ trading sideways on Wednesday, setting up another trend up day on Thursday if it can push above 21,570.
First support for NQ on Wednesday is at 21,350
A down day for NQ on Friday, closing below key support level at 21,000. However, NQ has rallied back above 21,00 in globex trading session if it continues into the open on Tuesday will be bullish.
Key resistance to break for NQ on Tuesday wil be at 21,100, a break could trigger buying to push it up to 21,400.
A break above 21,400 could trigger short-covering to cause a rally to the next resistance, 21,550. NQ would need to break below 21,000 to trigger a sell-off
The US market will be closed on Monday for Memorial Day. Will reopen on Tuesday
Thursday was another day of sideways consolidation above broken-resistance, now support, a zone between 21,500 to 21,000.
As long as 21,500 support is not broken, the current pullback in this current up-trend remains bullish, setting up another explosive rally that is likely to break above its recent all-time high 22,400.
As Friday is usually a sideways consolidation day, the breakout to new high or breakdown below support is not very likely as long as there is no major unexpected market-moving news such as anothe massive spike in interest rate.
Intraday support on Friday is 21,000, resistances are 21,300 then 21,500
Stocks and bond sold-off, bitcoin and gold rally following a failed 20-year bond auction. The 10-year treasury bond yield spiked. Without the Fed intervention the yield could spike to a level that can cause financial meltdown.
The Fed would be forced to come in to buy.
Key support for NQ on Thursday will be at 21,000. If that support does not hold we could see massive selling as foreign investores flee the US market.
A sideways choppy day for NQ on Tuesday. NQ is really struggling to rally above 21,550 resistance and is now looking likely to pullback down to lower level before attempting to break above 21,550.
Supports are 21,300, 21,200 and 21,00.
It is a choppy zone between 21,000 to 21,550.
The stock market opened with a huge gap-down but buy programs likely from the Trump administration team pushed the stock market upward but again stopped at 21,550 resistance for NQ, a major resistance going forward.
Buy program is likely to continue for a while. For NQ key resistance is now at 21,550, a break could force more short-sellers to cover, which is precisely the plan as they cannot afford to let Moody's downgrade to cause global investors to dump US assets.
Key support is at 21,000. If NQ could trade sideways above 21,000 in the next 1 to 2 days we could see other buyers coming in and cause a break above 21,550 and catapult NQ up to 22,000 area.
Another choppy sideways market action on Thursday. Friday could be the same. These sideways market action is a setup for big moves, up or down, likely not until next week as Friday tends to be choppy sideways.
Key intraday support for NQ on Friday will be at 21,350, a break could trigger some selling, with first support at 21,100 then lower support 21,000.
A very narrow range day for NQ on Wednesday, setting up for another trend up day on Thursday or a pullback day now that NQ is bumping into strong resistance and an overbought condition on the daily chart
Key intraday support for NQ on Thursday will be at 21,300. A break implies a pullback down to 21,000 support..
Trump decision to temporarily paused high tariff on China was an excure to launch massive buy program to forced the short to cover, thus halting market meltdown.
This bullishness is likely just temporarily as there is really no tariff deal, and the negative impact of Trump tariff will soon manifest itself, and economic shock and market sell-off will resume.
How soo will the selling resume, it is difficult to say. If short-covering continues we could see massive rally first before selling off.
For NQ key price level is now 21,000, bullish above, bearisg below it. If there is a pause before a break above 21,000 we could see NQ dropping down to 20,500 area and then break above 21,000.
NQ would need to break below 19,500 to trigger massive selling. For the current rally to stay intact NQ must stay above 20,500 on any pullback.
The stock market has rallied sharply in overnight trading as the US is using the tariff meeting with China to push the stock market up,
NQ is now trading at the lower resistance band 20,500-21,000. Without substantial result from the tariff talk the stock could sell-off hard. NQ would need to break above 21,000 to change the trend from down to up on the daily chart.
Key resistance for Nq on Monday will be at 20,500, bullish above and bearish below it.
Even with massive market manipulation by the Trump team, a combination of Tariff deal with the UK and massive buy program late on Wednesday the market failed to breakk above resistance on Thursday even with a huge gap-up open.
Friday may just be a sideways market action with key resistance at 20,500 and key support at 20,000. For NQ it may just trade within the price zone 20,000-20,500. Selling may have to wait until next week.
NQ would need massive buy programs to push it higher than 20,500.
Now that the FOMC meeting for May is out of the way market participants can make their decision. It seems that the market has rallied in overnight trading and if the rally can continue into the open on Thursday we could see a trending up day starting with a gap-up open.
If it is going top be a trending up day the next upside resistance zone is between 20,500 to 21,000. Whether or not it take one day or two days to get there we just have to wait and see. NQ would have to drop back below 19, 200 to turn bearish
For now, key support is 19,200-19,400 and key resistance is 20,500-21,000.
A very narrow range choppy price action for NQ on Monday as traders and investors wait for the Fed policy announcement on Wednesday.
Tuesday could be similar to Monday price action as market participants wait for the Fed policy announcement.
Key intraday support is at 20,000, a break below target 19,675. Staying above implies a rally back up to Friday swing high.
On Friday, NQ rallied into the bottom later of strong resistance zone on the daily and weekly chart, the area between 20,500 to 21,000. This resistance price zone is very strong, NQ may need to pullback down from it before attempting to break through.
This resistance zone may be where the current rally stop and the next sell-off begin. Trump tariff war is probing to be very costly to american companies. As their earning begin to drop sharply their stock price would follow.
Key intraday support is at 20,000. A break below could tank NQ down to 19,680. If that does not hold, next support is at 19,200.
|
||||||||||
|
||||||||||
|
||||||||||||
|
||||||||||||
