NQ Guideline For Wednesday

The US government will shut down at midnight , October 01 as the Democrat and the Republican disagree of budget, so there is no money to fund government activities.

Normally this type of issues does not affect the financial market by much. However, with the stock market in extreme overbought territory we could see the market selling off as a result.

The equity market has started to sell-off in overnight globex trading session. Without an agreement we could see selling to continue into the open on Wednesday.

For NQ, key price level to watch is 24,800, bullish above and ebarish below it.

NQ Guideline for Monday

Following three consecutive pullback down days, NQ had a positive close on Friday. Overnight NQ has rallied over 100 points which would trigger a bullish-bias day on Monday.. 

If the rally can continue into the open we it is an indication that the pullback has ended and the uptrend is resuming.

To do so NQ would need to stay above 25,700. Failure to stay above 24,700 is bearish. 

NQ Guideline For Friday

Now that the September Fed decision is out of the way the market can continue to rally. However, with the market in extreme overbought condition on the daily time-frame there is always a possibility the market can experience sharp 1 to 3 days pullback before resuming the uptrend.

Until the market violate strong support the uptrend should continue as the financial financial market is well liquefied. 

NQ Guideline For Thursday

As expected the Fed cut short term interest rate by 25 basis point. Initially the market sold off but then the Fed dovish stance sent stock abck up again.

The stage is now set for the market to continue to rally with increasing momentum as the shorts are forced to cover.

For NQ key support on the daily chart is now at 24,000. The rally should continue above that, with the enxt upside target at 26,000

NQ guideline For Wednesday

 FOMC decision day on Wednesday.

What the Fed decides and their messages could affect the financial market in a major way if their message is not in line with expectation.

It is very likely the Fed may not want to rock the boat and play safe. A 25 basis point cut and a neutral statement. if so, the stock market is going to continue to rally.

A surprise could cause a sharp selling and a pullback in the stock market.

NQ Guideline For Tuesday

The FOMC will start their meeting on Tuesday and announce their decision on Wednesday. The market has priced in a 25 basis point cut, bullish for the stock market. 

If the Fed should announce a 50 basis point cut instead of 25 basis point, the stock market is likely to explode higher.

The Fed is also expected to cut 2 more times before the end fof 2025 after the September meeting. The stage is now set for a parabolic rise in the stock market as short-sellers cover their short and reverse long for the year end rally,

NQ Guideline For Thursday

The stock market continues to rally and it should continue especially with the Fed expected to cut Fed fund rate by at least 25 basis point if not more.

Looks like the stock market is now going into its fast uptrend, into a blow-off top before it collapses because of economic slowdown.

With President Trump's plan to replace hawkish Fed governors with dovish governors by February 2026, we could see market participants front-running those moves, and rally into blow-off top phase as short-sellers turn bullish and FOMO sentiments takes effect.

The Fed Chairman to be replaed by may 2025

NQ Guideline For Friday

A small rally for NQ on Thursday. 

Ahead of the long Labour Day weekend, when the market will be closed on Monday, we could expect the market to  chop sideways, unless of course the market get an unexpected market moving news.

NQ Guideline For Thursday

NQ continued to trade sideways on Wednesday. It is still consolidating inside a bullish-bias zone. Thursday may be the day it breaks out and rally, we shall see. 

Key level for NQ to trigger the next trend up is at 23,650 and then pushes higher. A better setup would be for NQ to oen with a big gap-up that would force the shorts to cover.

Key support is 23,450

NQ Guideline For Monday

A big rally for the stock market on Friday as the Fed Powell was very dovish, ready to aggressively cut short term rate in September, perhaps by 50 basis point.

If the rally can continue on Monday/next week, we could see capitulation by the shorts. If so we can get a parabolic rally that could last for several weeks.

For NQ, key price inflection level is at 23,500, bullish above it but less bullish below it.