NQ Guideline For Tuesday

A choppy and narrow range type of day for NQ on Tuesday as NQ continued to be stuck below strong resistance zone between 4440 to 4475 area. It may need massive buy programs to break through resistance.

 

The daily chart is still in an uptrend and in buy mode but the momentum has greatly decelerate. The 60-minute trend is also indicating a slowing down in momentum, that could lead to a larger pullback down move.

 

On the short term time frame, key inflection price level remains at 4400.

-- NQ may try to rally above 4400.

-- The longer it stays below 4400, the more likely profit-taking could set in and take the market down. Next support is 4465.

 

Gold may be setting up for the next fast move up once the pullback to its 50-DMA moving average on the daily chart has ended.

NQ Guideline For Monday

With most traders out of the office for the long Easter weekend holidays last week, on Thursday  the market just chopped around in a narrow range sideways action. Now that most traders will be back from the holidays on Monday, the market can now continue to make a directional move.

 

With the daily trend still in a bullish buy mode, and the Fed in coordination with all the major central banks, continuing to liquefy the market, the equity market should continue to rally, albeit, in a slow choppy and narrow-range uptrend, as deflationary forces continues to fight central banks buy programs.

 

On the short term timeframe, key inflection price level for NQ on Monday will be 4400.

-- Trading above 4400 may trigger some short covering rally, next upside target is a break above recent high.

-- Staying below 4400 could put some selling pressure on NQ with the first support at 4365. With the daily trend still up, I don't expect any sharp selling to occur unless some unexpected market-moving news hit the market.

NQ Guideline For Thursday

Profit-taking ahead of the long Easter weekend pushed the market down all day on Wednesday, but it was choppy and narrow-range.

 

All major indices are still in a bullish buy mode on the daily chart. Whether or not there will be more profit-taking on Thursday, only time will tell, and in the morning at least, it will depends on where it trades in relation to key price level.

 

For NQ key inflection price level for NQ on Thursday will be 4400.

-- Bullish bias above 4400.

-- Bearish bias below, and it is an indication more profit-taking is taking place.

 

With the market closed on Friday, Thursday's trading may get choppy as most traders are already out of their office.

NQ Guideline For Wednesday

The slow and choppy rally continued on Tuesday, and should continue again on Wednesday.

 

Both the daily trend and the 60-minute trend are still in a buy mode. With all the major central banks in a massive money-printing binge, there is currently no sign the buy programs is going to stop anytime soon.

NQ Guideline For Tuesday

As expected, without any new buyers or news shorts that has to cover, it was another slow and choppy rally day for NQ on Monday. The pattern should continue until after we get a large pullback down move in the market.

 

The daily chart and the 60-minute chart timeframe remains bullish and in a buy mode

 

Key support for NQ on Tuesday will again be 4400, with inflection price level at 4410.

-- As long as 4400 remains intact, the uptrend should continue, target a break above Monday swing high.

-- Bearish below 4400 but it needs major catalyst to trigger major sell algos.

 

 

NQ GuidelineFor Monday

The stock market continued to rally in a narrow trading range again on Friday. Without new buyers, the current uptrend should continue to be choppy as the only main buyer in town, fighting the global forces of deflation, is the Fed itself, with other major central banks, the ECB, BOJ, PBOC, are also too busy fighting their own deflation forces with continuous rounds of massive money printing.

 

How much time is left before the fiat paper money system totally collapses, and the new gold-back money system replaces it, only time will tell, but it does not seems to be very much longer. We can see that all fiat currencies has been falling against commodities such as oil, and previous metals such as gold, even though central banks have been suppressing their prices with all their might.

 

But as traders, we must continue to trade price patterns, and the direction of our trades would depends on the timeframe we are trading in. Both the daily and the 60-minute timeframes are currently in an uptrend, but are now in overbought condition, and without a large pullback, the current uptrend is going to continue to be choppy and narrow range.

 

Key price level for NQ on the 5-minute timeframe for Monday will be 4400.

-- Bullish bias above 4400, with the first upside target is a break above Friday high.

-- Bearish below 4400, first support is 4390, then 4365.

NQ Guideline For Friday

NQ lagged behind the blue chips stocks on Thursday as market breath gets worse by the day. Unless the Fed is ready to directly restarts its own QE as opposed to engineering their QE through the BOJ, the PBOC and the ECB, we can expect the current rally to stall soon, to be followed by a resumption of the current bear market that started in January.

 

With the daily chart currently still in a rally mode, it would take some time before the current rally turns into a downtrend. For now the market may just continue to rally in a choppy narrow range trading pattern.

 

Short-term intraday key price level for NQ on Friday will be 4365 support.

-- If NQ stays above 4365, the shorts will remains inactive, first resistance is 4400.

-- Trading below 4365 could trigger some selling algos, supports are 4340, then 4330

 

NQ Guideline For Thursday

Massive buy programs triggered after the FOMC policy announcement failed to produce a massive rally, as the market pullback down into the close.

 

Buy programs resumed during after hours globex trading, with NQ back up to Wednesday's high, the goal is to keep the stock market rally intact. However, with the market breath indicating the current stock market rally unsustainable it would not be long before market forces overwhelm the market buyer led by the Fed.

 

For now, the daily chart is still in a bullish buy mode, but it is quickly approaching strong resistance, and the 60-minute chart is approaching very overbought condition, an indication the market is now at risk of a large decline.

 

On the 5-minute chart, key price level for NQ on Tuesday will be 4365-4370 - now support.

-- If NQ can stay above 4365-4370 support, short-covering should continue, with resistances at 4400, 4450, 4475.

-- Trading below 4365 is bearish and likely to trigger algo sell programs, with the next support at 4330 then 4310

 

Market Breath Indicator

NQ Guideline For Wednesday

With the FOMC decision due to be announced on Wednesday afternoon, the market paused on Tuesday. NQ traded sideways in a narrow range without any new buyers and without much buy programs.

 

With most traders and investors not expecting any change in policy from the Fed, the FOMC policy announcement on Wednesday could be a non-event. If so, and without any new buyers, it would again be left to the Fed to continue to push the stock market higher.

 

With the daily timeframe still in a buy mode, and without any major changes in the Fed policy, the market should continue to move higher into the end of March and possible into April.

 

Key inflection price level for NQ going into Wednesday will be 4355, but it is likely the market is going to chop around until the FOMC announcement.

 

Banks Perfect Storm

NQ Guideline For Tuesday

With most of the weak short-sellers out of the market it will be left to the Fed themselves to continue to push the stock market up ahead of the release of their policy statement on Wednesday. If so, the rally should be choppy and narrow range, but anything is possible. It should not surprise anyone if the Fed would trigger massive rally ahead of the policy announcement on Wednesday.

 

Both the daily and 60-minute timeframe for NQ are in bullish mode going into Tuesday trading. As long as pullback down does not get out of control, look for the uptrend to continue.

 

Key support level for NQ on Tuesday will be 4335.

-- As long as 4335 is not clearly violated on any down move, look for NQ to continue to make another higher high, with the next resistance at 4400.

-- A clear break below 4335 is an indication a larger pullback is in progress, next support is 4300.