NQ Guideline For Monday

A down-day for NQ on Friday, the selloff started right from the opening bell and continued all day into the close.

With such a negative momentum going into the close, unless NQ can stay above 4500 support I am looking for another sell-off day.with the downside target on the daily chart at 4400.

However, with the 60-minute timeframe currently in deep oversold  territory there is a possibility NQ could have a large bounce with key resistance at 4550 area.

If NQ can break and then stay above 4550, a rally to next resistance 4610-4615 is very likely. Failure to do so should lead to another strong selling.

NQ Guideline For Friday

A sharp sell-off in the various markets on Thursday, including the equities, Crude Oil and metals. 

With NQ still in a pullback-down mode, after opening with a large gap-down, an attempted rally in NQ failed as short-sellers again sold rallies. NQ selloff continued all afternoon and into the close, setting up either a gap-down open on Friday or another sharp sell-off on Friday, down to key support 4540 to 4560.

Unless crude oil price can stabilize, and unless NQ can rally and stay above 4610 on Friday, another down day for NQ is likely, next lower support is 4540 - 4560.

The stock of auction house Sotheby’s  tends to peak ahead of the art market (which seems to have happened again), and when it declines as much as it has in recent months, it has been a minor warning sign for the broader stock market (see chart below).

NQ Guideline For Thursday

On Wednesday, buy programs pushed NQ up to 4670 key resistance but was not able to break out above it, a failure attracted short-seller pushing NQ back down to the low of the day.

With NQ currently in a pullback down mode on the daily chart, a break below its recent low 4615  is likely to trigger numerous strong selling algorithms.

Key resistance for Thursday will be 4670 and key support is 4615.

-- A break our of 4615 - 4670 price zone is likely to trigger a strong breakout in the direction of the break.

-- NQ would stay in a choppy mode inside the 4615 -  4670 trading range.

NQ Guideline For Wednesday

NQ remained in a down-mode on Tuesday. After making a lower low soon after the open NQ traded in a sideways consolidation pattern for the rest of the day setting up another strong selloff. To do so NQ should stay below 4645 swing high and then trend down below Tuesday low.

Breaking above 4645 swing high could trigger short-covering rally.

NQ Guideline For Tuesday

NQ was clearly in a pullback-down mode on Monday, a strong selloff in the morning followed by a choppy rally for the rest of the day, clearly still a counter-trend up-move that should be followed by another sell-off, that is, as long as NQ rally remains below Monday's high and remains choppy.

Key inflection price level for NQ on Tuesday will be 4675.

-- As long as NQ remains below 4675 there is a high possibility another sharp selloff down moev is coming.

-- Breaking back above 4675 would relieve some selling pressure, and has the potential to trigger a short-covering rally.

NQ Guideline For Monday

Another sideways choppy day for NQ on Friday, the third pullback day in a row. 

If the current NQ uptrend on the daily chart is still in progress we should see a rally day for NQ on Monday. To do so NQ should stay above 4700 key inflection price level for Monday and push higher to above 4730 swing high.

However, staying below 4700 is an indication NQ daily uptrend may have ended. If so, look for NQ to trend down on Monday, and break below Friday low. Key support is 4670 and a clear break below 4670 could trigger strong selling algos. 

Against the backdrop of strong October employment reports and the Fed being forced to raise interest rates in their December meeting or lose all credibility, and when the ECB and the BOJ are going into money-printing binge, look for the USD to rally and gold to decline going forward, at least until December FOMC meeting.

Gold Price chart

NQ Guideline For Friday

Another narrow-range down day for NQ on Thursday. With NQ in deep overbought territory it would requires a massive Fed buy programs to push the market higher without first a larger pullback.

The employment reports to be released before the market open on Friday could provide an excuse to move the market higher or lower.

Key inflection price level for NQ on Friday will be 4700.

-- Bullish above 4700, with the next upside target will a break above 4730 swing high.

-- Bearish below 4700, with the next support coming in around 4670.

NQ Guideline For Thursday

NQ traded sideways all day on Wednesday but with a slight bearish bias. NQ closed in the middle of the trading range, but above key support price level at 4700, setting up for a rally day on Thursday as long as NQ can stay above 4700.

However, if NQ is not able to stay above 4700, a break below 4700 is bearish and setting up another down-leg. If so the next support is 4680.

NQ Guideline For Wednesday

Another up day for NQ on Tuesday with short-sellers being forced to cover. Although the market is in extreme overbought territory on all time frames, and is vulnerable to a large and quick down-move, with uptrend in extremely strong momentum, as long as pullback down does not get out of control NQ should continue to melt upward.

Key support for NQ on Wednesday will be 4700.

NQ Guideline For Tuesday

On Monday, NQ rallied to a new high above prior swing high (July high), the high before the massive August plunge, and closed above July high, setting up a massive short-covering rally, which is exactly what the Fed buyers are hoping for, or a sharp reversal back down if the Fed is unable to hold NQ above July high and trigger a short-covering rally..

Key price level for Tuesday will be around 4675.

-- Bullish above, target is another higher-high above Monday's swing high.

-- A break-back below 4675 is bearish but NQ would need to break below 4645 to gain downside momentum.