NQ Guideline For Thursday

As widely expected, the Federal Open Market Committee — the central bank's policy making arm — kept its benchmark overnight lending rate target at a range of 0.5 percent to 0.75 percent. Fed buy programs managed to push the market back up to into the close.

NQ sold off hard, dropping down to support, in the morning after opening with a huge gap-up. Buy programs eventually managed to push NQ back up to the open, closing with a doji candlestick pattern on the daily chart.

 

NQ has now sold off in overnight trading, currently trading below Wednesday's day low. If buy programs did no0t show up before the open on Thursday NQ would be opening with a hugh gap-down. If so, the likely trend will be down for Thursday.

 

Key support for NQ on Thursday will be 5120, which is where NQ is currently trading after hours on Wednesday night.

-- If NQ can stay above 5120 on Thursday look for NQ to rally back up to test Wednesday swing high.

-- Failure to stay above 5120 is likely to trigger another round of selling. First support is, 5100, then its second support, Tuesday swing low, 5083. A sustained break below could trigger a cascade of selling.

 

NQ Guideline For Wednesday

The stock market sold off hart in the morning on Tuesday but late day buy programs managed to pushed the market back up.

 

NQ dropped down to support, prior swing high (January 20) before selling was overwhelmed by buying. Afternoon buy programs managed to pushed NQ back up to close the gap, setting up either more rally on Wednesday or a resumption of pullback down mode. The key is where it trades in relations to its inflection price level.

 

For Wednesday key inflection price level will be 5125 for NQ.

-- A sustained break above 5125 should cause NQ to rally to its next resistance 5145.

-- Staying below 5125 could trigger another rounds of selling activities, support is at Tuesday swing low.

 

President Trump bans immigration from several countries, fires acting attorney general for refusing to enforce ban.

NQ Guideline For Tuesday

The stock market sold off sharply on Monday, with NQ opened with a small gap-down but then sold off immediately, breaking through multiple support. NQ dropped down to just below 5100 key support price level before profit-taking caused NQ to trade sideways the rest of the day.

 

With both the S&P 500 and the Dow recent higher high came with a very pronounced bearish divergence on the daily chart, the selloff may not be over in just one day. Whether or not we would get a consolidation day on Tuesday before selling resumes, only time will tell.

 

Key price level for NQ on Tuesday will be 5100 support.

-- If NQ can stay above 5100 on Tuesday, look for NQ to either trade sideways or rally. First resistance is 5140 then 5155.

-- A sustained break below 5100 is an indication we would get another large down day. If so lower supports are 5080, 5060 and 5000.  

NQ Guideline For Monday

The general equity market, including NQ simply traded sideways in a very narrow trading range on Friday. Until we get a decent multi-day pullback down move on the daily chart the market is going to continue to chop its way upward.

 

On the 5-minute timeframe, inflection price level for NQ on Monday will be 5155, with the first support at 5140 and first resistance at Fridays swing high 5168.

-- If NQ can stay above 5155 at and soon after the open, the upside target is a break above Friday swing high before profit-taking sets in..

-- Trading below 5155 at the open or soon after the open is an indication NQ is likely to go down to 5140 support. Should that support level get violated, lower supports are at 5125 then 5100.

 

The main stream media is now obsessed with President Trump temporary ban on people coming into the US from certain countries.

NQ Guideline For Thursday

After almost two months trading in a narrow range, sideways consolidation , on Wednesday both the Dow and the S&P 500 finally broke out of the range, breaking to the upside. As long as they can stay above the breakout price level the uptrend is going to continue for a while as short-sellers scramble to cover their shorts.

 

All major indices are now in overbought territory but short-covering activities could continue to push the indices into more overbought territory before they tops and profit-taking activities stops and even reverse the rally.

 

On the short-term time frame key price balance point on Thursday will be 5140.

-- Short-covering activities is likely to cause a gap-up opening on Thursday, if so, look for the rally to continue with or without a pullback. As long as pullback remains above 5140, the uptrend should continue to another higher high.

-- Trading below 5140 is going to run over some stop losses and can cause some selling. If so the next support is 5100.

 

NQ Guideline For Wednesday

On Tuesday NQ finally breakout of its trading range and trend up all day into a new higher high. It was the largest trading range in days. S&P 500 made a new high before retreating. Dow failed to make a new high.

 

Very often during the current rally, after an up day like on Tuesday NQ would trade sideways for days. Whether or not Wednesday will be a choppy sideways day only time will tell.

 

Key price level for NQ on Wednesday will be the 5100 whole number resistance.

-- Trading back above 5100, if it can sustained a break above 5100 could trigger another round of buying.

-- Failure to break back above 5100 is an indication NQ is back into choppy sideways mode, first support is at 5080

 

President Donald Trump shows off the executive order reviving the Keystone XL pipeline, signed on Tuesday.  (Evan Vucci / AP) 

NQ Guideline For Tuesday

On Monday, President Trump first day as President, the stock market still continued to traded sideways in a choppy narrow range trading pattern. Without buyers with most funds and investors already mostly long the market, with no one bailing out of their long position yet, the market could continue to chop around.

 

However, with China as the main target of President Trump economic policy, we could expect China to take the first offensive financial move by devaluing its currency to cause the United States stock market to crash.

On the short term 5-minute time frame key balance price level for NQ on Tuesday will be 5055, first resistance is 5075 and first support is 5030.

NQ Guideline For Monday

With most traders busy with Donald Trump presidential inauguration on Friday, the stock market simply traded sideways in a narrow trading range.

Now that Trump inauguration is out of the way the stock market can move out of the current trading range. Although the stock market is in overbought conditions on the daily chart and is vulnerable to some sharp selling, any selloff is sure to attract buyers until key support is broken to the downside.

 

For NQ the key support remains at 5000. with the Dow and the S&P both remaining above their respective 50-DMA support.

 

On the short term intraday 5-minute time frame, key price level for NQ on Monday will be 5060 with 5045 as key support.

-- Trading above 5060 is an indication NQ is still going to target higher high, a break above Friday swing high before profit-taking selling pressure pulls NQ back down.

-- Trading below 5060 implies a pullback down to first and key support at 5045. Should selling breaks clearly below 5045 the next lower support level where buyers come in is 5000.

NQ Guideline For Friday

Friday will be Donald Trump's inauguration day as president of the United States. As such, the market may be choppy, and anything is possible.

 

Important inflection price level for NQ on Friday will again be 5045, first support is 5025. 

NQ Guideline For Thursday

Not much happened in the stock market n Wednesday. NQ traded sideways in a very narrow range, an indication traders and investors are going to wait for President Trump to take office before making a big move.

 

Key support for NQ on Thursday will again be 5045. Again, it is also possible the market may just trades sideways until Trump inauguration.

-- Bullish above 5045, next upside target is 5080.

-- The next support below 5045 is 5025.