NQ Guideline For Tuesday

Deflationary forces continued to drag the market down on Monday. Although they are able to get the Dow into new high the intensifying deflationary forces is likely to exert itself until central banks either loses control and let the market forces take the market wherever they may want to go or hyperinflate the currency.

 

The battle central banks and deflation should continue a while longer, expect the markets gyration to get more intense going forward.

 

Key price level for NQ on Tuesday will remains at 4700.

-- A clear and sustained break below 4700 has the potential to tank NQ quickly down to 4500 - 4550 support zone.

-- Selling pressure should be under control if NQ can remains above 4700 price level. resistance are 4740, 4760, 4800.

 

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NQ Guideline For Monday

NQ remained above 4700 support on Friday which provided much needed relief from selling pressure. NQ then simply traded sideways in a relatively narrow range.

 

With Trump's presidential victory the stage is now set for massive debt-deflationary collapse and at the same time the Fiat currency hyperinflationary collapse which has now started in many emerging market and eventually come to the United States in not so distant future.

The global bond market has started to collapse, including the US bond market. Within a span of just a few days since the presidential election the 10-year US treasury yield has spiked from a low of 1.5% to over 2.00%, thus draining much needed liquidity.

 

In their attempt to counter deflationary forces, central banks are sure to create massive amount of helicopter money, setting a stage for hyperinflationary collapse of global fiat currency system. We should see asset price deflation & goods and services hyperinflation happening all at the same time. In such as scenario gold and silver is going to shine.

On the short-term 5-minute timeframe, key price level for NQ on Monday will be 4740.

-- Sellers should remains relatively inactive above 4740, next resistance is 4800.

-- NQ could come under selling pressure below 4740, but it would need to break below 4700 to trigger another round of algorithm liquidation selling activities, next support is 4500-4550.

NQ Guideline For Friday

On Thursday, the Fed were caught unprepared in the early morning when massive selling hit the NQ market, tanking NQ down all the way to 4700 support, briefly spiked below 4700 before buy programs were able to stabilize the market.

 

Selling in the technology is likely to continue going forward as President Trump trade policy (tariff) come into effect in the new year. Tariff  is bad for everyone and is very deflationary, so look for forces of deflation to accelerates going forward.

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

-- Ability to stay above 4700 may relieve selling pressure.

-- A break down below 4700 could tank NQ with lower supports at 4500-4550 area.

NQ Guideline For Thursday

As Trump victory started to seems imminent the stock market started to crash. Panicked central banks started to intervene, first just halting the collapse and then eventually were able to erased all the losses by the opening bell on Wednesday.

Buy programs continued all day just to hold up the stock market. With Trump election victory the forces of deflation is certain to accelerates. A trump victory also assured that helicopter money is on its ways and soon. The Fed is now ready to create unlimited about of paper currency to directly buy the treasury bond issued by the government.

 

The beginning of the end the global paper money regime is here, and now. How fast will the paper money regime collapses, it is difficult to predict. The speed will directly depends on how much paper currency they creates.

 

Key price level for NQ on Thursday will be 4800, now acting as support.

-- With the Fed certain to continue to support the stock market for a while longer, look for the stock market to rally for a while longer. To do NQ needs to stay above 4800 as a break back below 4800 could attract more selling.

-- NQ would be under selling pressure below 4800.

NQ Guideline For Wednesday

The stock futures market indices has stared to crash with Dow and the S&P Futures down big time and NQ down over 240 points as the election results so far is showing a possible Donald Trump winning the US Presidential election.

If in fact Donald Trump wins the Presidential election we can see a massive stock market crash come Wednesday morning if in fact they will open the stock market for trading

 

The election result winner may not be obvious until much later into the night, but look for the stock market to crash if Donald Trump wins, and looks for a the stock market to bounce back up if Hillary Clinton wins.

 

If in fact Hillary Clinton wins the Presidential election, key price level for NQ for Wednesday will be 4800.

-- A clear break above 4800 should trigger some short-covering rally as short-sellers who has gone short betting on Trump's  victory will have to cover.

NQ Guideline For Tuesday

Massive buying programs by the Fed that started on Sunday night continue into Monday and very likely to continue non-stop into Tuesday in order to help elect Hillary Clinton. A Trump presidency is not a risk the Wall Street bankers is willing to take.

 

For NQ key resistance on Tuesday will be 4800 price zone. It is where both the 50-DMA and the 20-DMA on the daily chart resides, and they are acting as resistance with price currently trading below them.

-- Failure to clearly break above 4800 is likely to attract sellers that could overwhelm the fed best effort.

-- A clear break above 4800 could trigger some short-covering.

 

With the market fully pricing in Hillary Clinton's win, look for potential massive selling to occurs if in fact Trump would win. Expect the unexpected.

NQ Guideline For Monday

Double-bottom support on the daily chart did not get violated on Friday as NQ simply traded sideways staying in a narrow trading range.

 

With the US presidential election just a few days away the Fed is likely to flood the financial system with massive liquidity to ensure the market rally big in order to help elect their puppet candidate Hillary Clinton. A trump victory could spell the end of the Fed and that a risk they cannot take.

 

It looks like the buy programs has already started on Sunday night and is likely to continue into Monday trading, and likely to results in a huge gap-up opening. With the stock market in deep oversold territory on Friday looks for massive rally on Monday unless of course some unexpected negative news for Hillary Clinton hit the newswire and deflationary forces overwhelm the Fed

 

Key price level for NQ on Monday will be 4700.

-- A break-back above 4700 could trigger profit-taking and short-covering activities likely to cause a huge up-day. Resistance are at 4740 and then 4760. Strong resistance zone is around 4800.

--  If the Fed is not able to keep NQ above 4700 look for NQ to remains under strong selling pressure.

NQ Guideline For Friday

Another large down day for NQ on Thursday. Attempted bounce off the 4700 support failed to attract any buyer, NQ then broke below 4700 support and proceeded to drop to lower low without the usual end of day buy program bounce.

 

Many traders and investors are positioning for a possible Trump winning the presidential election on Monday. Trump winning is certain to crash the stock market and many traders are positioning their bet to gain from Trump winning.

Key price level for Friday will now be 4700 previous support now resistance.

-- Trading below 4700 should keep NQ under intense selling pressure.

-- NQ needs to break-back above 4700 to relieve some selling pressure.

NQ Guideline For Thursday

NQ continued to sell-off but remained above 4700 support. Whether or not NQ would crash through 4700 support and tank quickly to the next support zone at 4500 only time will tell. But Wednesday was the seventh down days in a row for NQ and a one or two days bounce is in the cards.

 

However, a bounce is not a guarantee. A strong declining momentum of this current selloff may in fact be able to keep pushing the market lower. With the Fed inability to raise interest rates to keep the international capital flowing into the US market, the market selloff can continue. A Trump election victory is almost certain to crash the stock market and many investors may be exiting the market ahead of the election in anticipation of a Trump victory.

 

Key support for NQ on Thursday will remains at 4700.

-- If NQ remains above 4700 selling should be muted, NQ either just consolidate sideways or rally, with first resistance at 4755.

-- A clear and sustained break below 4700 is going to unleashed another rounds of selling, next potential support at 4650 but strong support is not until at 4500-4550.

 

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NQ Guideline For Wednesday

Wednesday is an FOMC policy decision announcement day.

NQ opened just above 4800 key support on Tuesday but then sold off immediately. An attempted lunch rally failed to break NQ back above 4800 support-turned resistance which is just an excuse for major algorithm to sell the market hard.

 

NQ dropped down to just above 4700 support before the Fed buying algos managed to rescue the market and ramp it up into the closing bell, a type of window dressing for the Fed ahead of their decision on Wednesday afternoon.

 

With the market fully pricing in Hillary Clinton's victory a surprise Trump victory is likely to crash the stock and the bond market hard. Donald Trump winning chances is just getting better and better by the day.

 

Key inflection price level for NQ on Wednesday will be 4745, with first support at 4700 and first resistance at 4790.

-- Trading above 4745 should keep sellers at bay and could rally NQ back up to 4790, a strong resistance where many sellers are waiting to sell again.

-- NQ will remain under tremendous selling pressure below 4745, but support remains at 4700. With the FOMC decision to be announce in the afternoon, look for the Fed to remain active in the market.