NQ Guideline For Wednesday

NQ opened with a gap-up, but selling quickly overwhelmed the buyers. NQ then quickly dropped down to just above key support on the daily chart before rallying back up and closed up at the day high.

Key price zone for NQ on Wednesday will be 7440 support and 7460 resistance.
-- A break out of the 7440-7460 price zone is likely to trigger fast move away from the range. If so, support is again at 7390 and resistance is at 7490.

NQ Guideline For Tuesday

The equity market futures sold off hard overnight Sunday night, but massive buying by the Fed before the open on Monday managed to erased all the losses.

 

On Monday, the buy programs continue all morning, pushing NQ back up into 7490 resistance before sellers came back in. NQ then dropped back down towards Friday's low, just above the crucial 20-day moving average on the daily chart, now acting as key support.

 

Key price level for Tuesday will be 7390 support and 7440 resistance.

-- 7390 is a crucial support and a break is likely to trigger massive algo selling with the next support and target down is the 50-dma on the daily chart, at 7275 as of Monday's close.

-- Breaking back above 7440 could trigger some short-covering, with the next resistance again at 7490

-- Failure to breakout of the 7390 - 7440 price zone will keep NQ in a sideways pattern.

 

Contagion from Turkish currency crisis is going to be bearish for the market, and may be the catalyst for the selloff.

 

NQ Guideline For Monday

On Friday NQ opened with a gap-down and then trend down most of the day. End of day profit-taking activities helped pushed NQ back up a bit.

 

NQ low on Friday was at key 20-moving average on the daily chart, setting up some rally on Monday if NQ remains above 20-ma, or tank if NQ break below its 20-ma on the daily chart which at Friday closing was at 7390.

 

On the 5-minute timeframe, key price level for NQ on Monday will be 7440 resistance.

-- Failure to break back above 7440 will attract some selling with key support at 7390.

-- A break below 7390 on Monday is likely to trigger heavy selling, if so, NQ could tank very quickly down to the next support level, .7270.

 

Equity futures market is trading in the red in overnight  trading session, blamed on Turkish contagion.

NQ Guideline For Friday

On Thursday NQ opened just above support and then immediately rally to a higher high above prior day high before pulling back down, closing below key 200-sma support on the 5-minute chart, an indication wave 5 rally on the 60-minute chart has likely ended, and a-b-c wave decline targeting its 50-sam is in progress..

Unless the Fed buying algorithm can push NQ back up above key balance price level before the market opens on Friday, which on Friday will be 7485 , profit-taking ahead of the weekend could tank NQ down to lower supports, 7445 and then 7400.

 

Key price level for NQ on Friday will be 7485, bearish bias below, bullish bias above.

-- First support below 7485 is 7445. Unless the market gets very bearish 7445 support should hold. In the event the market gets very bearish, stronger support is at 7400.

-- Trading back above 7485 is going to trigger short-covering, if so the nest target is a break above Thursday swing high.

Note that Friday tends to be a choppy sideways trading patterns as traders balances their books for the weekend

NQ Guideline For Thursday

On Wednesday, NQ opened with a gap-down and then dropped down to 7440-7445 support zone before rallying back up where it made a higher high above prior day high before pulling back down.

 

On the 60-minute chart NQ has a clear 5-wave rally starting from the low on July 30th to today's high. If wave 5 has ended NQ would now drop down below its 20-ma going towards its 50-ma on the 60-minute chart.

Thus going into Thursday trading key support would be the 20-ma on the 60-minute chart, 7470 by the open on Thursday.

--  Trading below 7470 on Thursday could start to run over some trailing stop which should drop NQ down to lower supports, 7445. If the market does get bearish, lower support for NQ are 7400 but strong support is not until 7370

-- Trading above 7470 is an indication wave 5 has not ended. If so, the next upside target is a break above Wednesday swing high.

NQ Guideline For Wednesday

NQ continued to rally higher on Tuesday but was not able to break through 7490 resistance. NQ then traded sideways in a very narrow trading range.

Unless it can break out above 7490 resistance and triggers more short-covering, NQ may need to pullback down to support before rallying back up again.

Key support/resistance price level for NQ going into Wednesday's trading is 7475.
-- If NQ can stay above 7475 short-covering may help push NQ above 7490 resistance and trigger more short-covering. If so the next upside target is a break above July 25 swing high.
-- Breaking below 7475 could trigger some profit-taking decline. If so the next support is at 7440.

NQ Guideline For Tuesday

NQ broke above 7400 key resistance on Monday, then after a successful test of the breakout,  it then triggered short-covering thus triggering rally all day long.

NQ then broke above 7440 resistance and close above 7440 resistance at the end of the day, 7440 is now support going into Tuesday trading session.

 

Thus key support for NQ on Tuesday will be 7440.

-- Trading above 7440 should keep the short-covering rally going without a pullback. If so the next resistance is 7490.

-- Trading below 7440 should trigger some profit-taking pullback. If so, first support is at 7400

NQ Guideline For Monday

NQ traded sideways in a narrow trading range on Friday, consolidating the huge gain from massive Thursday rally.

 

Unless the shorts panic and cover, there is not many buyers at this level, thus NQ may continue to either trade sideways or pull back down to support  before rallying up again.

 

Supports on a pullback down are 7350 and 7320.

 

NQ needs a sustained break above 7400 resistance to force the shorts to cover. If so, resistances are 7450 and then 7490.

NQ Guideline For Friday

NQ opened with a large gap-down below prior day low, a breakdown open,  but the open was just above key 50-day moving average support on the daily chart.

 

The breakdown open was quickly reversed,  as the 50-day moving average algos came to buy aggressively, over-running the intraday timeframe breakdown sellers, clearly larger longer-term algos over-running the smaller groups of intraday traders.

 

NQ rallied non-stop all day breaking above the 20-dma resistance price level. With Friday normally a sideways consolidation day, NQ may just traded sideways on Friday.

 

Key support for Friday is now at 7300, with 7370 as key support/resistance price level.

NQ Guideline For Thursday

Key price level going into Wednesday trading session was the daily chart 50-day moving average as support at 7200 and the 20-day moving average as resistance at 7320. 

 

NQ opened inside the 7200 - 7320 range on Wednesday and stayed inside the range, as expected, trading in a sideways consolidation pattern. Until we get a breakout of the range NQ would continue to trade sideways.

 

Key price level going into Thursday trading session is again the daily chart 50-day moving average as support at 7200 and the 20-day moving average as resistance at 7320. 

 

With Wednesday as the second consolidation days following two large down days, NQ looks ready to drop down hard on Thursday. However, in order to do that NQ would need to break down below 7200 to trigger the 50-day moving average algorithm sell programs .

 

On the short term intraday 5-minute timeframe, key inflection price level for Thursday will be the 5-minute 200-period moving average, sitting at 7250 as of Wednesday close.

 

On Wednesday without any surprise news on the FOMC decision on interest rate at the July meeting, the market did not react at all. The next crucial meeting is not until September when the Fed is widely expected too raise short tem interest rate again.