Trade Guideline For Monday - NQ

NQ continues to trade sideways with a slight downward bias, a base for a snap-back rally or a running correction before a massive sell-off.

The direction for NQ on Monday will depend on where it trades in relation to key level, and then what it does at breakdown and breakout level.

Key Level For Monday is 2720.
-- Above 2720 implies it is in a pullback -up mode, with resistance at 2730, then 2745-47.
-- Supports below 2720 are 2705, 2695, 2650

John Williams -- Hyperinflation in the US within 1 year

Trade Guideline For Friday

Thursday was the 5th consecutive down-days for NQ, and it is now clearly in a "CRASH" mode, with the next target down at 2650. 

Nasdaq decline so far is being slowed down by the S&P 500 holding above key support 1425 in S&P futures. A clear and sustained break below 1425 in S&P could trigger massive selling in all markets, including Nasdaq.

Key Level to watch for on Friday is 2720 in NQ and 1425 in ES.

-- Above 2720 in NQ implies likely ABC wave up rally, targeting 2745-47 resistance. If the market can get very bullish, a clear and sustained break above 2747 could trigger a short-covering rally up to 2765, then 2775 resistance.

-- Below 2720 implies the next big down-leg is in progress, with first support at 2703-2694. If ES can break and stay below 1425, NQ could liquidate down to 2650 or lower. 2650 is the next major support for NQ.

Trade Guideline For Thursday

Wednesday was the fourth consecutive down-days, with minor support at 2718 holding up the decline, for now at least. On a break below 2718 the next minor support that may halt or slow down the decline is 2700.

Below 2700 the next support is 2650. It is possible going into the weekend that we may get a pullback up day or days, especially if either 2718 or 2700 support can hold.

Key level for Thursday is 2718.

-- Above 2718 implies NQ is in a consolidation / pullback-up mode with the first resistance at 2745-47. It would take a very bullish day to clearly break above 2745-47 resistance. However, should it breaks, a sustained break above 2747 has the potential to trigger a short-covering rally that can push price up to 2763 resistance and 2773-75 resistance.

Trade Guideline For Wednesday

On Tuesday, as expected, trading below key support level resulted in a large-range down day. For Wednesday, depending on where NQ trades at, it is either going to be another large-range down day or sideways consolidation day or pullback-up day.

Key Level for Wednesday is 2730 support.

-- A sustained break below 2730 support could trigger a very large down day, as the next support for NQ is not until 2650, but first target down  is 2700, then 2650.

-- Above 2730 implies sideways consolidation day or a pullback-up day, with upside resistances at 2760, 2775

Spanish Austerity Protest Continues

Trade Guideline For Tuesday

A narrow-range down day on Monday following a reversal day on Friday. Depending on where the market trades on Tuesday, it could either be a pullback-up day or a strong sell-off day. 

The market technical pattern is set for a strong sell-off day or days.

 Key Level for Tuesday is 2762.

-- A clear and sustained break below 2762 area could trigger a massive market sell-off  with first downside target 2730

-- Above 2762 implies continual sideways consolidation day or an up-day, with resistances at 2800, then 2810-2815.

FT Pivot Numbers area:

FTP = 2783.25

R1 = 2792.00

S1 = 2770.00

Spanish anti austerity protest continues to intensify

Trade Guideline For Monday

A gap-up open reversal day on Friday, retracing the prior 2-day rally.

Key Level to watch on Monday is 2815.

--- Above 2815 implies Friday down-wave has ended, and in a rally mode. Resistances are 2825, 2830 and 2838.

--- Below 2815 implies Fridays decline is still in progress, downside supports are 2800, 2790, 2781, 2772

Monday is a Columbus Day holiday in the US, and the Bond market will be closed, hence be prepared for a possible narrow-range choppy day.

Trade Guideline For Friday

A narrow-range short-covering day on Thursday with the close not far from the high of the day. 

Key Level For Friday is 2820.

-- Above 2820 short-covering should continue, target 2838, then 2853

-- Below 2820 implies NQ is in a pullback mode, target down 2810 then 2800, 2790

Gold Price Chart since 1970.

Trade Guideline For Thursday

Another consolidation day on Wednesday with a bullish bias. For Thursday key level to watch for is Wednesday's swing high. 

-- A sustained break above Wednesday high could trigger short-covering rally, targeting 2838 then 2853 area. 

-- Below Wednesday low implies it is going down, first target is FT Pivot 2806, then 2890 and 2782

Chart of US Monetary Base

Trade Guideline For Wednesday

Another consolidation day on Tuesday with the close near the high of the day, the first leg up, wave 1 or A.  Once that ends, look for a pullback down to be followed by another upleg, as long as the pullback down does not break below Tuesday's low. 

Key supports are 2788 then 2782, then Tuesday's low. Breaking below Tuesday's low target 2763.

Resistance is Tuesday's swing high, then 2808, 2817, 2825.

Gold Chart adjusted to real inflation

Trade Guideline For Tuesday

Market opened with a gap-up on Monday after the unofficial announcement of QE4, but was short-lived as NQ reversed back down to closed near the low of the day, on a negative momentum into the close.  It would have to trade above 2800 to regain bullish momentum

Key Level For Tuesday is 2800.

-- Continuing bearishness below 2800, with key support at 2772. Next support below is September 26 swing low. A clear and sustained break below could lead to a liquidation decline.

-- Bullish bias above 2800 with key resistance at 2825.  next resistance above is 2853.