NQ Guideline For Friday

On Thursday NQ opened and then tanked all morning breaking through several support levels before stopping just above well defended 4300 support. The Fed buy programs with the help of the end of day profit-taking helped propel NQ back up to 4350 resistance level.

 

4350 will be key inflection price level for NQ on Friday.

-- If buy programs can pushed NQ back up above 4350 resistance, short-covering should help propel NQ further up to higher resistances, 4370 then 4400.

-- Failure to break and stay above 4350 could attract short-selling, key support is again 4300.

 

Note that the trend on the daily chart is still down. NQ is currently still trading below its 20-DMA.

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NQ Guideline For Thursday

On Wednesday, early morning rally for NQ failed to break above 4400 resistance. As expected, its failure to clearly break above 4400 attracted short-selling. NQ then sold off the rest of the day, closing near the low of the day.

 

Key inflection price level for NQ on Thursday will be 4370.

-- Unless NQ can break back and stay above 4370 on Thursday look for selling to continue. Supports are 4350 then 4320.

-- Trading back above 4370 is likely to cause some short-covering, with first resistance at 4400

 

NQ Guideline For Wednesday

As the annual bearish period that usually begin in May approaches, the market continued to be engineered higher on Tuesday, the third up day in a row, making Wednesday a key day for the market.

 

A continuing rally on the fourth day may indicates the downtrend as seen on the daily chart that started in the middle of April may have ended, an indication the pervious uptrend may have resumed.

 

For NQ however, it is currently approaching key resistance zones between 4400 and 4440. A break above 4440 implies an uptrend on the daily chart has resumes, but failure to do so is likely to attract another round of sell programs.

 

On a short term five minute timeframe, key price level on Wednesday will be 4400.

-- Staying below 4400 is likely to attract some selling. if so, the first support is 4350.

-- A break above 4400 is going to trigger some buying, next resistance is 4440.

NQ Guideline For Tuesday

Monday rally fizzled into the close as profit-taking and short-selling pushed NQ down into the middle of the day range at the close. With the daily chart still in strong down trend traders will be looking to sell rallies on Tuesday.

 

Key support for NQ on Tuesday will be 4320.

-- As long as NQ can stay above 4320, most short-sellers will be on the sideline. A rally up to 4400 could attract heavy selling activities that could push NQ back down.

-- Breaking below 4320 has is likely to attract algo sell programs, with the next support at 4300.

 

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NQ Guideline For Monday

On Friday, after spending most of the morning below 4300 key support price level, massive buy programs in the afternoon managed to push NQ up to 4325 resistance, and then closed just above 4325 resistance, setting up a potential short-covering rally on Monday, unless of course NQ trades back below 4325 key inflection price level for Monday.

 

If NQ failed to stay above 4325 is likely to trigger some selling, first support is at 4300. NQ needs to break back below 4300 to be bearish.

 

If NQ can stay above 4325 on Monday it is likely to trigger some short-covering, nest resistance is 4370.

 

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NQ Guideline for Friday

Another sideways consolidation above 4300 well defended key support price zone on Thursday. However, with the release of the monthly employment report on Friday, and after five consecutive day consolidation above 4300 level, NQ may be ready to move away from the 4300 price zone,  moving away upwards or downwards.

 

For Friday, 4300 remains the key support price level for NQ. A clear break could cause liquidation decline. Remaining above 4300 could produce either another sideways price action, or a rally if it can trigger some end of the week short-covering.

NQ Guideline For Thursday

NQ traded sideways above 4300 key support most of the day on Wednesday as the Fed buying algorithm was parked at 4300 support, knowing that a clear and sustained break below 4300 is likely to unleashed selling activities that can easily get out of control. For Thursday look for 4300 to again be well defended price zone.

 

4300 would continue to be key support for Thursday.

-- NQ trading above 4300 is likely to keep short-sellers at bay. First resistance is at 4325.

-- Should 4300 support clearly breaks and triggers algo sell programs, lookout below. next support is at 4100

 

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NQ Guideline For Wednesday

NQ opened with a gap-down on Tuesday. After spending the morning trading sideways, afternoon buy program failed to close the gap, an indication of a strong selling pressure leaving may longs trapped and still holding on to their position. Unless NQ can rally back up to 4375 resistance on Wednesday and let them out, and instead sell-off, the longs would have to bail likely causing a liquidation decline.

 

Key inflection price level for NQ on Wednesday will be 4340 area.

-- Trading above 4340 would keep short-sellers at bay until NQ rally up to 4375 area.

-- Trading below 4340 will be bearish but NQ would need to break below 4300 to trigger massive algo sell programs

 

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NQ Guideline For Tuesday

On Monday NQ opened and stayed above 4300 key support. The after consolidating sideways all morning buy programs came in the afternoon sending NQ up to 4375 resistance, and staye there at the close.

 

On Tuesday key price level for NQ will be 4375 resistance.

-- Bullish above 4375 and likely to force some shorts to cover. if so the next resistance is at 4400.

-- Failure to break and stay above 4375 could cause some selling, with supports at 4340 then 4325, then 4300. NQ would need to break below 4300 to trigger another round of liquidation decline. 

 

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NQ Guideline For Monday

NQ continued to sold off on Friday, dropping down to 4300support before end of the week profit-taking sets in pushing the close above day low.

 

With NQ daily chart in a downtrend, it is just a matter of whether we would get a pullback up day on Monday or a continuation of daily chart downtrend.

 

Key support for NQ on Monday will be 4300.

-- Trading above 4300 should keep short-sellers at bay until NQ has rallied up to resistance at 4375 area. Should 4375 proved itself as resistance, look for short-sellers to come back aggressively.

-- Trading below 4300 is likely to trigger another round of algo sell programs, next support is at 4100. However, I don't expect NQ to hit that level in one day, but it would not surprise me if it does