NQ Guideline For Wednesday

A pullback down day for NQ on Tuesday. NQ opened below key support then traded down to lower support 5025 before rally back up to retest broken support at 5045.

 

Above 5000, NQ is still bullish and above breakout price level.

 

Key price level for NQ on Wednesday will be 5050 resistance and 5025 support.

-- A sustained break out of the 5025 - 5050 trading range will cause a trending move in the direction of the break. On a sustained break below 5025, the next lower support is at 5000, and a sustained break above 5050, the next resistance is at 5080.

-- A false breakout will cause a fast reversal move.

 

Ahead of Donald Trump inauguration on Friday, the market can get choppy.

NQ Guideline For Tuesday

The stock market was closed on Monday for the Martin Luther King holidays. The stock market will reopens on Tuesday.

 

NQ remains in buy mode on the daily chart, but both the Dow and the S&P 500 have been trading sideways for weeks, the rally momentum has stalled, and unless they come up with massive buy programs, the forces of deflation is going to overwhelm the buyers, but it is very likely they are not going to pull out their support prior to the Presidential inauguration on Friday.

 

On the 5-min chart, key support for NQ on Tuesday will be 5045

-- Above 5045 the rally is going to continue, targets are 5080 to 5100.

-- Trading below 5045 implies NQ is going to pullback down to lower support, at 5025.

NQ Guideline For Friday

On Thursday, NQ pullback down to re-test the breakout price level, prior swing high 4995, December 2016 high, which is now key support level. As long as NQ continue to trade above 4995 the bias is still to the bullish side.

The successful re-test of 4995 support on Thursday is setting up a fast move up to the next target/resistance zone, 5080-5100. As long as NQ continues to trade above 4995, the above target is remains valid.

 

However, breaking back below 4995 is bearish, and very likely to trigger sharp and large decline to 4850 - 4900 is a very short time ( 2 to 3 days)

 

Key inflection price level for NQ on Friday will be 5025.

-- NQ is bullish above 5025 on Friday. If so, the next upside target is 5060 - 5080 before profit -taking could push price back down.

-- Breaking back below 5025 implies NQ is going back down to retest support 4995-5000.

NQ Guideline For Thursday

Larger cap stock in the Dow and the S&P 500 continue to trade sideways on Wednesday while Nasdaq attempted selloff following Trumps speech was aggressively bought, with NQ making a new higher high and then closing at the high of the day.

With the Fed unwilling to let the market drop the stock market is likely to continue to either trade sideways for lack of new buyers or continue to rally in a choppy way.

 

Key price level for NQ on Thursday remains at 5030.

-- If NQ stays above 5030 on Thursday it should continue to rally to a new higher high without a larger pullback down move.

-- Breaking below 5030 implies a consolidation pullback down move before rallying back up again. The next support below 5030 is 5000. 

NQ Guideline For Wednesday

Without buyers left to buy the stocks except the Fed buying algos, the big cap stocks are just trading sideways while the smaller cap stocks in Nasdaq simply stairs-step upward in a very narrow range.

 

The stock market is clearly in a topping pattern, in overbought condition on the daily timeframe, and looks ready to drop down at any time. When it does, and once the major indices break below key support level, the Fed may get overwhelmed by avalanches of selling.

 

But for now the major indices such as the Dow, the S&P500 and NQ are still trading above their key support level. as such, selling remains under control.

 

Key short term 5-minute timeframe support for NQ on Wednesday will be 5030.

-- As long as NQ can stay above 5030, it could continue to chop its way to another higher high.

--  A break below 5030 implies a larger pullback, next support is 5000.

NQ Guideline For Monday

Massive buy programs triggered right at the opening bell and continued all day managed to pushed the stock market up on Friday with NQ rallying into a new higher high, a large up-day for NQ.

 

Without any major surprised market-moving news, the stock market rally should continue with or without a pause or consolidation.

 

Key price support level for NQ on Monday will be 4995.

-- If NQ remains above 4995 on Monday the rally should continue to target a new higher high before profit-taking selling comes in.

-- A break below 4995 is an indication the rally is in a pause mode. If so, look for NQ to drop down to a lower support at 4960.

 

The democrats is trying everything to prevent Trump from becoming President.

NQ Guideline For Friday

After making a new high at the beginning of December the Dow has not gone much anywhere. It has been trading sideways in a narrow range, look ready to dropped down hard.

 

Attempted selloff on Thursday was met with massive buy programs, but selling is likely to overwhelm buyers unless they come in with overwhelming buying power.

 

They managed to keep NQ rally going on Thursday, with NQ closing near the day high. With Friday normally a sideways choppy day look for NQ to be choppy unless big algo buy programs backed by free money hit the stock market.

 

The 5-minute time frame support for NQ on Friday will be 4940.

-- Trading above 4940 would keep selling mostly under control.

-- Breaking below 4940 could trigger some selling, next support is 4920 then 4900.

 

Sears is closing 150 stores

Sears announced a second wave of store closures on Wednesday, bringing the total number of closures scheduled for early 2017 to 150.

 

NQ Guideline For Thursday

A second up-day in a row following a sharp end of the year 2016 sell-off. NQ is now back up above key 4900 price level, now support. A break-back below 4900 is going to be bearish for NQ and could trigger another round of selling.

 

Whether or not the Fed is going to continue their massive buy programs to push the stock market further up, only time will tell. But as long as NQ remains above 4900, sellers should remains under control, and NQ could continue to rally. 

 

On the 5-minute timeframe, key support for NQ on Thursday will be 4920.

-- Trading above 4920 implies NQ is likely to continue to go higher.

-- Below 4920 could trigger some selling, next support is 4900.

NQ Guideline For Jan 03/2017

2017 will be a year of massive chaos not only in the financial markets, but also chaos in the economy in general. The bond market collapse has begun, the high-end real estate collapse has begun, the stock market collapse should follow next followed by the dollar collapse.

 

On the shorter term time frame, January could be a bearish month as investors take profit. With everyone currently long the stock market and holding fat profit, look for potential mad rush to cash out to lock-in profit in anticipation of a lower capital gain tax from Trump Presidency.

 

We could see a flash crash unless the Fed is ready with unlimited amount of capital to absorb the avalanche of sell orders. However, with the stock market still in a very bullish mode on the long-term timeframe (weekly and monthly), unless critical support gets clearly breached, look for the stock market to bounce and rally again after the initial bout of profit-taking selling.

 

On the 5-minute timeframe, key support is at 4850 and key resistance is 4900.

-- A breach of 4850 support could quickly tank NQ down to 4800.

-- As long as 4850 support is not violated we can expect a rally in the market or a sideways consolidation. A sideways consolidation is not a likely event because traders and investors are initiating new positions.

NQ Guideline For Friday

NQ dropped down to 4900 key support on Thursday and bounced off it closed at the open. A break would have been very negative.

 

With Friday as the last trading day of 2016 anything is possible as traders and investors would have to balance their books by the end of Friday's trading.

 

Key support for NQ on Friday will be 4900.

-- As long as 4900 is not violated selling should remains under control. If so we can expect either a sideways trading action or a rally.

-- A clear break below 4900 is not a good sign for the stock market. If so, look for another round of selling.