Guideline For Tuesday

After a brief early morning counter-trend rally into resistance, NQ reversed and trend down into support in an ABC wave pattern. Late afternoon rally pushed the closing price into the middle of the range, setting up a a neutral close.

On Tuesday, depending on where NQ trades in relation to its price inflection level,  4090, we would see either a re-test or a break of Monday's high or low. If there is a break, a possible trend out of the range in the direction of the break, or a reversal after a break.

Key Resistance is 4105

Key Support is 4075

Guideline For Monday

On the daily chart, NQ had a 2-day pullback down days on Wednesday and Thursday last week. On the 60-min chart, it was a clear ABC zig zag 1:1 retracement that was reversed after making a lower-low on Friday morning, as can be seen on the chart below.

After making a lower-low to end the 5-wave decline from Thursday high, NQ rallied all day on Friday in a 5-wave sequence (chart below)

Key inflection price level on Monday is 4080.

-- Bullish above, targeting a break above Wednesday/Thursday swing high.

-- Bearish below 4080, target a re-test of Friday swing low or a break below Friday swing low.

Guideline For Friday

Following ECB's QE announcement NQ quickly rallied up to resistance, after failing to make a higher-high above yesterday high, quickly reversed back down crashing below support and closing near the day low, making Thursday a second down-day in a row.

It is likely the top is in, and pullback is in progress. If so, NQ should continue to decline, first breaking below support on the daily chart which is at 4055, down to 4020.

Key price level for NQ on Friday is 4083.

-- As long as rally can stay below 4085 NQ should resume its selloff, next support is 4055 then 4020.

-- Breaking back above 4085 is likely to trigger a short-covering rally, targeting the recent swing high.

Guideline For Thursday

Pushing against resistance and in extreme overbought territory on the daily chart, on Wednesday NQ opened with a gap-up above prior day high, but, instead of the usual small pullback in the morning followed by a rally, NQ crashed through key support triggering momentum algo sell programs, then closing not far up above day low - setting a tone for more selling on Thursday.

Key inflection price level for NQ on Thursday is 4085.

-- Staying below 4085 is an indication NQ is still in down mode, supports are 4060, 4050, 4020

-- Trading back above 4085 is likely to trigger short-covering, with algo buy programs targeting a break above Wednesday swing high.

Guideline For Wednesday

On the daily chart, NQ is in wave 5 of 5 up as can be seen from April pullback swing low, currently pushing against resistance and in overbought territory. Although momentum is slowing down, NQ is still in a strong up trending mode, see chart below.

On Tuesday, after opening with a gap-up above Friday's swing high and then re-testing 4075 support, NQ rallied back up to re-test the morning high, a choppy narrow-range up-day on Tuesday.

Ahead of the ECB policy decision on Thursday, widely expected to announce a massive QE, the usual pattern of choppy narrow-range rally days may continue until Thursday, as long as there is NO unexpected major pullback that violates technical support.

Key support for NQ on the 5-minute chart, on Wednesday is 4083.

-- Bullish above 4083 with next upside target above Tuesday swing high..

-- Trading clearly below 3083 implies a larger pullback, with next support down at 4075., then 4060.

Guideline For Tuesday

The equity market badly need a major pullback down move to attract algos back into the market, simply because a slow & choppy  narrow-range uptrend is not very attractive for the big algos. Without a major pullback down move the current slow choppy narrow range uptrend is going to continue.

Key inflection price level for NQ on Tuesday is 4075.

-- Above 4075 NQ should continue to slowly chop upwards.

-- Bearish bias below 4075. First support is 4060, then 4050, 4030

Guideline For Friday

Another choppy narow range low voluem day on Thursday. On Frday ahead of the loong labout day weekend the market tends to be choppy and narrow range as most traders are off for the long weekend.

Absent any unexpected even the choppy narrow range pattern should continue on Friday. Inflection price level for Friday is 4070.

Guideline For Thursday

NQ again traded sideways in a very narrow trading range on Wednesday on very low volume. 

Absent any buyers except the Fed HFT trading machine designed to keep pushing the markets higher, and absent any short-seller until the Fed gets out of the way, the current pattern of very choppy and narrow range day is going to continue, unless the conditions change.

Key inflection price level for Thursday is 4070 in NQ.

-- Next upside is 4100

-- First support is 4060

Guideline For Wednesday

Another slow choppy very narrow-range low volume up day for NQ on Tuesday because without a decent pullback down there is no new buyers to buy and no short-sellers to cover to cause a strong upmove, as the only buyer in town is the Fed HFT machine programmed to keep the market up into the long labour day weekend.

Absent any big sellers the market may continue to chop higher into the weekend.

Key inflection price level for NQ on Wednesday is 4070.

-- Bullish bias above 4070 with the next target up is a break above Monday's swing high, next whole number resistance is 4100.

-- Below 3970 it may drop down to the next support zone 4060 the 4050.

Guideline For Tuesday

On Monday, NQ opened with a gap-up to another higher-high on the daily chart, then after a choppy early morning rally, profit-taking set-in droppign NQ down to support before bouncing back up to re-test the opening price from below.

NQ market looks tired and may be ready for another pullback-down day before rallying for the long lanour day weekend.

Key inflection price level for Tuesday is 4060.

-- Staying above 4060 is an indication NQ is going to make another higher-high above Monday's swing high before pulling abck down.

-- Trading below 4060 implies NQ is going into a larger pullback-down mode, next support is 4045-4050.