Trade Guideline For Friday

On Thursday, as expected, with the opening price action above 2870 key equilibrium level, NQ rallied immediately, fueled by short-covering, and it trend up all day on Thursday, with the usual end of day profit-taking decline. Whether or not the end of day decline will continue on Friday will depends on where it trades in relation to its equilibrium level.

For Friday key level to watch is 2905.

-- More bullishness above with more short-covering rally above 2905.

-- Below 2905 implies pullback decline is going to continue, with first support at 2894.50 area (FT Pivot). Below that the next support level is 2883 area.

Trade Guideline For NQ on Thursday

On Wednesday, after making a higher high above Tuesday swing high near the open, NQ reversed and slowly trend down in a choppy way all day.

For Thursday morning  as long as NQ is below its previous support now resistance 2870 area, the morning trend should be down.

Above 2870 is an indication that Wednesday's pullback has ended rally continues.

Trade Guideline For Wednesday

On Tuesday, NQ briefly pullback down in the morning to complete wave C down before rallying all day, closing at the day high. For Wednesday, continuing rally or a pullback down.

Key level For Wednesday is 2882.

-- Above 2882 implies the uptrend that started on Tuesday morning is still in progress.

-- Breaking below 2882 is an indication that pullback is in progress, if so, look for ABC way down

Trade Guideline For NQ on Tuesday

On Monday, Nasdaq rallied in the morning then pulling back in the afternoon, breaking down below key equilibrium level at 2867 area, setting up a potential wave C decline in the morning on Tuesday.

Key Level To watch on Tuesday is 2867.

-- If NQ can stay below 2867 area in the morning on Tuesday, look for the trend to be down, a declining wave C or 3.

-- However, if instead, price is above 2767 and stay above 2867 in the morning then Monday's afternoon pullback has ended, and the pullback was in fact, a setup for the next leg up.

Trade Guideline For NQ on Monday

Friday was a down-morning and up-afternoon. For Monday there are 2 possible trend directions depending on where NQ trades in relation to key price level.

Key Price Level For Monday is 2833 area.

-- Above 2833 is bullish, upside target is resistance No.1 2855.

-- Below 2833 target a decline down to first support 2817. 

NQ Trade Guideline For Friday

Early morning breakout and rally to resistance for NQ on Thursday, then followed by sideways consolidation into the close.

For Friday, support is 2838 and resistance is 2855. A clear and sustained break our of the 2838 - 2855 trading range would cause a trending move out of the range, in the direction of the break, targeting the next support or resistance level.

Trade Guideline For NQ on Thursday

Wednesday was the second consecutive sideways consolidation day, but it may be ready to trend again, either trending up or trending down.

Key level to watch on Thursday is 2840 resistance and 2820 support.

-- A clear and sustained break out above 2840 could trigger a short-covering rally, with the next resistance at 2759.

-- A clear and sustained break below 2820 could trigegr a long-covering decline, with support at 2805-2810, then 2780-2785

-- Failure to breakout and stay out fot he range 2820 - 2840 implies continual sideways consolidation.

Trade Guideline For NQ on Wednesday

On Tuesday NQ continued to rally into resistance in the morning before consolidating the rest of the day. 

On Wednesday, as long as it stays below 2832.50 NQ should continue to pullback down towards supports 2805, then if that does not hold the next support is 2780.

A sustained break-back above 2832.50 may trigger another round of short-covering rally, next resistance is 2857.

Trade Guideline For NQ on Tuesday

A gap-up open on Monday, and after an early morning pullback down to support, rallied up to resistance before dropping down on end of day profit-taking activities. 

On Tuesday, failure to continue to rally above 2810 implies NQ is going into a pullback mode down, either choppy sideways consolidation above support, or sharp reversal back down breaking support

For Tuesday, key level to watch for is 2810 resistance.

-- Below 2810 implies NQ is either in a pullback mode. Supports are 2794, 2780 

-- Above 2810 implies more short-covering rally, next resistance is 2835, 2859

Trade Guideline For NQ on Monday

An up-trending day on Friday, with a trend-up morning and consolidation pullback afternoon into the close.

If Monday is another up day then price should stay above equilibrium price level 2770, with or without a gap-up open.

Below 2770 implies NQ is going into a larger consolidation, with first support at 2750, the Thursday swing low, or another trending down day if it can break and stay below below Thursday swing low. Staying above Thursday swing low implies consolidation trading range type of day.