NQ Guideline For Friday

A choppy sideways pattern for NQ on Thursday, with NQ rallying in the morning then reversed and sold-off in the afternoon.

The volatility should continue as selling pressure resulting from global credit contraction tends to overwhelm buyers causing the market to have wild intra-day swings, a clear signs that the market is topping, but not quite ready to sell-off. The markets needs to clearly break above the high to negate potential sell-off.

Key price level for NQ on Friday will be 4500. Note that Friday tends to be a choppy sideways type of day

-- Bullish above

-- Bearish below

NQ Guideline For Thursday

Following a second consecutive Chinese Yuan devaluation on Wednesday NQ opened with a gap-down that was immediately followed by a run-down to support and the 1:1 target before it reversed and spent the rest of the day rallying up to just below key resistance.

Key price level for NQ on Thursday will be 4500.

-- As long a price can stay above 4500 NQ is either going to be trading sideways or rallying back up, provided it can break above 4545 key resistance level. Next higher resistance is at 4600

-- Breaking back below 4500 will bring back sellers.

China devalued its currency for the 3rd time in three days on Thursday China time.

 

NQ Guideline For Wednesday

Following PBOC devaluation of the Yuan on Monday night the US stock market opened and sold-off on Tuesday, Although the close was off the low of the day it was nonetheless a down day in the market.

The PBOC again devalued the yuan for a second consecutive day on Wednesday China time sending Asian markets down, and the sell-off should spread into the US equity market on Wednesday, unless of course world central banks would come in to support the market overnight.

Key price level for NQ on Wednesday is 4500

-- Selling pressure should subside above 4500 with resistances at 4530 and 4545.

-- Selling pressure should continue below 4500 with first support at 4480, with the next support and a 1:1 target down at 4435 area.

NQ Guideline For Tuesday

Sunday night ramp-up was designed to caused a huge gap-up open on Monday in order to trigger short-covering rally, and that was exactly what happened on Monday.

Whether or not a follow-through buying would continue on Tuesday depends on where pullback-down support would come in.

Key pullback support for NQ on Tuesday would be 4530 area 

-- As long as pullback-down move can stay above 4530 NQ should resume its uptrend. Next target is a higher high above Monday high.

-- A violation of 4530 support is an indication NQ downtrend has resumed 

NQ Guideline For Monday

A typical Friday pattern for NQ on Friday, a sideways consolidation pattern, with NQ trending down in the morning then followed by afternoon rally. 

Key price level for NQ in the morning will be 4500.

-- Above 4500 short-covering should continue with the first resistance at 4530. Failure to clearly break above 4530 is an indication the current downtrend is going to resume without further pullback. Breaking above 4530 however implies a move up to the next resistance 4550.

-- Below 4500 the sell-off should resume, next support is 4440.

NQ Guideline For Friday

Following a failed ramp-up attempt by the Fed on Wednesday NQ sold off hard on Thursday dropping all the way down to just above 4500 support before profit-taking bounce price back up a little bit.

With a highly manipulated market, an employment report released before the open could cause a large gap at the open. The direction would depends on where the gap open will be, assuming there is a gap.

Key support and resistance for Friday will be 4500 support and 4600 resistance

-- Staying inside the 4500-4600 range could make for a choppy Friday.

--  Trading outside the range could trigger strong trending move, particularly if trading below 4500, with lots of stops to be has, it could trigger another round of selling algo, next target down is 4430-4440.

-- It would require massive intervention by the Fed to gap prices up above 4600 resistance in order to trigger short-covering rally.

Gold chart 

NQ Guideline For Thursday

A large gap-up open for NQ on Wednesday designed to trigger short-covering rally. The rally faded going into the lunch hour that lasted all afternoon into the close.

Key inflection price level for NQ on Thursday will be 4600. Unless NQ can break out above 4630 resistance or breakdown below 4575 support, look for NQ price action to be choppy. 

-- First resistance is 4630

-- First support is 4575.

NQ Guideline For Wednesday

NQ traded sideways all day on Tuesday, stuck between 4545 support and 4575 resistance, setting up for the next strong move away from the range, the direction depends on where it trades in relation to the 4545-4575 range.

Currently both the 60-minute time-frame and the daily chart time-frame are in a sell mode, likely to trigger a down day on Wednesday, but with a highly manipulated and a very active Fed buyers, anything is possible.

-- Bullish above 4575, with the next resistance at 4600

-- NQ is bearish below 4545, next lower support is at 4520 then 4500.

A clear break out of the range is likely to trigger a fast move to the next resistance or support 

A summary of Fed Projection

NQ Guideline For Tuesday

After trading sideways in the morning on Monday NQ suddenly broke below 4475 support level, triggered algo sell programs that quickly tank NQ down to key lower support 4550, briefly viloated 4450 support befor finding enough buyers to cause NQ to rally back up to broken support now resistance 4575, with the close just belowit.

Key inflection price level for NQ on Tuesday will be 4575.

-- Bullish bias above it, with first resistance at 4600. A clear and sustained break above 4600 is likely to trigger a short-covering rally.

-- Bearish bias below it with first support at 4550. A break-back below 4500 is likely to trigger another round of sell algos that can quickly tank NQ down to 4500 support.

Both the 60-min time-frame and the daily time-frame for NQ are currently in sell-mode (bearish) 

NQ Guideline For Monday

Following three up-days in a row, bumping up against strong resistance at 4600 price level, short-sellers and profit-taking caused NQ to pullback-down on Friday. 

As long as NQ remains below 4600 on Monday morning selling pressure should continue with key support at 4575. Trading below 4575 has the potential to trigger algo selling programs that can quickly tabk NQ down to either 4560 or to 4530 area.

Short-covering should continue above 4600 with resistances at 4630 and then 4685.