Guideline For Friday

With Janet Yellen testifying before congress on Thursday the market rallied, fueled mostly by the Fed buy programs with nasdaq NQ making a new high. 

The rally should continue, but the rally is slowing down, running out of steam, and may go into a pullback mode in not too distant future.

Friday tends to be a choppy day with a bullish bias, Support for NQ in the morning is 3695.

-- Above 3695 NQ should continue to rally, next upside target is 3725.

-- Below 3695 is an indication NQ is going into a pullback mode.

Key support for ES is 1848-51.

-- Above implies ES rally is going to continue.

-- Below 1848-51 is an indication ES is going into a pullback mode.

Guideline For Thursday

The market rallied up to resistance in the morning, but was not able to push through resistance. Eventually the market sold off in the afternoon down to key support level then consolidated into the close, setting up either another down-leg in the morning on Thursday or rallied back up, and it would depends on where it trades in relation to support and resistance levels..

Janet Yellen's testimony before congress on Thursday is going to generate volatility in the market, so the Fed buyers would definitely be very active in the market.

Support is 2838 for ES and 3670 for NQ

Resistance is 1848-1851 for ES and 3700 for NQ.

-- A break aove resistance could cause short-covering rally,

-- A break below support could cause liquidation drop.  

-- choppy inside the range between support and resistance

Guideline For Wednesday

Both Nasdaq and S&P opened and quickly dropped down to support on Tuesday but the Fed algorithm buy programs kicked in and quickly rallied the market back up, runing-over trailing stop-losses and triggering momentum algo buy programsthat quickly took both NQ and ES ti their respective resistance levels, 1848 - 1851 for ES and 1700 for NQ..

When the buy programs failed to push the market through resistance, profit-taking and momentum algos sell programs pushed the market back down to support.

Again, when the morning support held, short-sellers covers, pushing the market up to rsistance at the closing bell.

For Wednesday key price zone and inflection level to watch for are 1848-1851 for ES and 3685 for NQ

-- More shorts will be forced to cover if price trades above key inflection price zone on Wednesday.

-- Trading below key inflection price zone could attract short-sellers to come back in to sell the market.

First resistance is Monday's swing high., first support is 3670 for NQ and 1838 for ES.

-- If NQ can break and then stay above Monday's swing high, next upside target for NQ is 3725.

-- For ES, a sustained break above 1848-51 could attract momentum algo and should push ES into a new higher high above Monday's swing high.

-- A clear and sustained break below support 1838 for ES and 3670 for NQ could cause a fast liquidation decline, but with Janet Yellen testimony before congress on Thursday, it is a sure bet that the Fed algorithm buy programs would step in aggressively.

Gold continued to rally.

Guideline For Tuesday

The market rallied into higher high in the morning on Monday then pulling back down to support into the close, and it looks ready to rally back up again into higher high on Tuesday, but as long as key support is not clearly broken, a break would be a bearish sign.

The new Fed Chairperson will testify before congress on Thursday. Look for the Fed buy programs to go into high gear to ensure that Janet Yellen would look great when she testify before congress on Thursday. Whether or not they will be successful in pushing the market up, only time will tell.

Key support for NQ on Tuesday is 3680, and for ES it is 1844.

-- Above support price level, look for NQ and Es to run up again into another higher high. Next upside target for NQ is 3725, for ES  1870

-- A clear break below key support is likely to trigger algorithm sell orders targeting next support 1838 for ES, 3670 for NQ.

Gold continued to rally, next resistance is 1360-1380 area.Breaking above 1380 could trigger a fast short-covering spike.

Guideline For Monday

Friday was a pullback down-day for the major averages, an indication that the the market is in a pullback-down mode. Note that the current trend on the daily chart is up, and in an uptrend, pullback normally last 2 to 3 days, but in a very strong trend, and the current uptrend is still very strong, pullback may last only one day before the trend resumes.

Hence, Monday may either be another pullback-down day or a resumption of the current uptrend, and it will depends on where price actions are in relation to key price inflection level.

Price inflection level for ES is 1838, and for NQ is 3670

-- Below 1837 is an indication that ES will still want to go down to other support level, supports are 1830 then 1820 before rallying back up. 

-- Above 1838 implies ES is ready to resume its uptrend, target is higher high, but first resistance is 1844.

-- For NQ, below 3670 is an indication NQ is still going further down to lower support levels, 3660 or 3640-45. before attempting to rally.

-- Rallying back up above 3670, or trading above 3670 is an indication NQ is already ready to make another higher high, with upside target at 3700, but it has to break through resistance levels 3685 before it can get to 3700..

Guideline for Friday

After making a lower-low below Wednesday swing low the market rallied all day into the close, setting up the usual Friday rally.

As long as price action is above key price level NQ and ES should rally to new high. How much higher high will they go is hard to predict, but next upside target for NQ is 3700, and for ES it will be 1855-1860

Key support-resistance price level for NQ is 3662.50 and for ES is 1834.

Guidelien For Thursday

A series of bad economic numbers and the escalating unrest in Ukraine overwhelmed the Fed buyers even after the S&P made a higher high early in the morning. Nasdag NQ was bearish right from the open.

 

The market should opened with a gap-down to support in the morning on Thursday or open and run-down to support. 

ES key support for Thursday is 1820 and support for NQ is 3630. 

-- As long as these support holds, look for the market to rally into Friday.

-- Breaking below key support could trigger more algorithm sell orders.

Key resistance for ES on Thursday is 1832 for ES and 3655 for NQ. 

-- Opening above key resistance or breaking above key resistance is bullish, implies the usual weekend rally has begun.

Guideline For Wednesday

The market consolidated on Tuesday, with ES and NQ both made a higher high above Friday's swing high, but without much shorts left to cover the Fed buy programs was not able to gain much momentum to the upside.

With the FOMC minutes to be released at 2 PM eastern on Wednesday and the upcoming Janet Yellen testimony before congress, the Fed buy programs should continue. How successful will they be will depends on where the various indices trades in relation to their key technical price level.

Key inflection price level for NQ on Wednesday is 3680.

-- Above 3680 is an indication NQ is going to make another higher high, NQ upside target is still at 3700 - 3725.

-- Below 3680 implies NQ is going into a pullback mode, with first support at 3665. A clear and sustained break below 3665 isbearish, next strong supprot is 3630

Key price inflection level for ES is 1840.

-- Bullish above, targeting higher high above Tuesday's swing high. ES upside target is 1870 - 1890.

-- A lear and sustained break below implies ES is going into a pullback mode, first support is 1832. Strong support is at 1822.

Guideline For Tuesday

With the US debt ceiling suspended last week, without much fanfare and media coverage,  suspended for the next 13 months, the Fed is now free to print as much dollars as needed to bail out their member banks and to continue to inflate the stock market bubble, the real estate market bubble and the bond market bubble, designed to make Janet Yellen looks good.

 

With Janet Yellen as the Fed Chairperson, a more trigger happy money printer than Ben Bernanke, the stage is set for unprecedented money-printing episode, so, going forward, look for these 3 bubbles to continue at a faster and faster pace until the dollar collapses.

The other beneficiaries of the upcoming unprecedented money-printing episode besides the stock market and the real market are the precious metals market (gold, silver, platinum) and other real assets. 

The casualty will be the US dollar, to collapse, which would then take down the whole global fiat currency regime and the bond market collapse as traders and investors run away from paper currency to real asset.

The signs of imminent dollar collapse are all around us, such as the dollar falling and gold and silver price rising even with the Fed's gold price price suppression scheme in full force.

Gold has now clearly broken above the down trend line and above the 200-day moving average, setting up a stage for the algorithms to change their trade direction from selling pullbacks to buying pullbacks, and look for the shorts to panic and cover, setting up for the gold price to rocket up or large opening gap-up.

Gold next upside targets for the current breakout is between $1,400 - $1,450, but, on its way to the target price, there is a very strong resistance area to break, $1,350-$1,360, which may or may not cause a large pullback.We must continue to keep in mind that the Fed has unlimited amount of dollars to suppress gold price.

For Nasdaq and S&P and the whole equity market, on Tuesday --- look for the Fed buy programs to continue as Janet Yellen will be testifying before congress sometimes this week, even if there is some selling pressure, as the beginning of the week tends to be bearish.

Support for ES is 1820-1825, for NQ support is 3630-3635.

Guideline For Friday

Another upday, another higher high in NQ and ES on Thursday as shorts continued to get sqeezed by the Fed buy programs ahead of the long weekend (the market will be closed on Monday).

By the end of the day on Thursday most shorts have covered so unless the Fed continues to buy, the market may be ready to pullbackdown or consolidate on Friday.

Key price level to watch for on Friday will be 1824 for ES and 3650 for NQ.

-- Rally will continue above 1824 for Es and above 3650 for NQ.

-- Consolidation or downtrend below key level, ES supports are 1818, 1810, for NQ supports are 1835, 1825, 1815.

Gold has now broken above key resistance 1300, with the next resistance at 1320 and 1350. If the Fed gold suppression team fails to push gold back down below 1300 gold can explodes upward very quicky as the shorts get runover.

Watch 1300 as key price level for now.