NQ Guideline For Friday

NQ traded sideways in a very narrow range on Thursday as profit-taking activities from overbought conditions continues cause a very slow drop..

 

Without any buyers and sellers the market continues to chop around in a narrow range sideways action. Friday tends to be a choppy day, thus without any unexpected market-moving news, we could reasonable expect NQ to trade sideways in a  narrow trading range again on Friday.

 

Key short term intraday inflection price level for NQ on Friday will be 7280.

-- NQ is bearish on intraday basis if it trades below 7280, with support at 7240.

-- NQ would turn bullish again intraday if it trades above 7280, first resistance is at 7325 double-top

 

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NQ Guideline For Thursday

Wednesday was the fourth consecutive day of rally where NQ closed near the day high, clearly manipulated by the Fed and the PPT in order to run over stop losses of those still holding short positions.

 

This rally is unsustainable and the drop could be fast and quick as most shorts may have covered. NQ is now in overbought conditions on the 5-min chart, the 60-min chart and the daily chart..

 

Without further aggressive buying by the Fed and the PPT, NQ is going to fall sharply down when it breaks key support, the first key support is the 200-ma on the 5-min chart.

 

But for now, going into Thursday trading session, key inflection price level is 7300.

-- If the overnight buy programs can again cause the market to gap-up above Wednesday swing high we could see another rally day. However, because NQ is now in overbought conditions on all major timeframes, longs are starting to be more  risky until NQ can pullback down to the 200-ma on the 5-min chart.

-- NQ is bearish below 7300, with first support at 200-ma on the 5-min chart.

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NQ Guideline For Wednesday

On Tuesday, after rallying up to higher high in the morning, NQ then spent the rest of the day in a choppy narrow range consolidation pattern, closing just below key inflection price level, 7240, which should serve as key inflection price level for Wednesday's trading session.

 

On the 5-minute chart, at the end of the day on Tuesday, NQ looks set to pullback down to support, the 200-ma right away in the morning, as long as NQ does not opened with a gap-up above 7240.

 

However, with buy programs normally running very active during low volume overnight globex trading session, opening with a gap-up could either cause a trending up move to another higher high, or a gap-reversal type of day. If it is a gap-reversal type of day, the reversal downside target is again the 200-ma on the 5-min chart.

NQ Guideline For Tuesday (June Contract)

NQ opened with a gap-up above key 200-ma on the 5-minute chart, no doubt the PPT was intervening in the market as Boeing shares tanked hard overnight Sunday nigh, after the Ethiopian Airline Boeing 738 Maxx 8 aircraft fatal crashed, the second Boeing 737 Max 8 crash since Ryanair Boeing 737 Max 8 crashed just a few month ago.

 

With non-stop buy programs, the market continue to rally all day, helped by short-covering. There was no pullback, as NQ continued to rally all day long, closing at the high of the day, setting up a high probability gap-up reversal down day on Tuesday

 

Key intraday inflection price level for NQ going into Tuesday trading will be at 7180 (June contract).

-- With a high probability of a choppy consolidation day following a large trending up day, a break back below 7180 is a clear indication that NQ is in consolidation mode. If so, the first support is 7140. then 7110.

-- Although a low probability, if NQ can stay above 7180 it could continue to rally to break above the recent swing high, 7240 June contract before profit-taking tank NQ back down, or short covering rocket NQ upward to higher level.

 

NQ Guideline For Monday - (Note that price level is stll based on March 2019 contract)

On Friday NQ opened with a huge gap-down but then reversed and rallied most of the day, closing just below key resistance level, 7035, which will serve as our key line-in-the-sand for Monday.

 

Should NQ trades above 7035 on Monday, with or without a gap-up, it is likely to trigger some short-covering, which could cause a rally. If so we could see a rally to 7075 resistance before dropping back down towards the 7035 area. However, if the market would get very bullish the next very strong resistance is at 7100.

 

Failure to trade back above 7035 is bearish, an indication NQ is going back down. If so, first support zone is 7000. If that support is breached we could see NQ trading down to test Friday's swing low. A break below Friday swing low that is accompanied by very bearish market internals could cause  a large down trending move.  

NQ Guideline For Friday

On Thursday NQ opened below key support price level, 7110, which happens to be also below prior day low, triggering massive algos sell programs, and dropping down below strong support, the 20-dma on the daily chart.

 

NQ has now clearly broken below the 20-dma on the daily chart, indicating the uptrend that started at the end of December 2018 has officially ended. Unless NQ can break back and stay above its 20-dma on the daily chart, NQ is set for a multiday fast and large decline.

 

NQ may consolidate the large down day on (Thursday's decline) simply because Friday tends to be a choppy day. However, should NQ continue to drop lower on Friday instead of consolidation we could see a huge fast decline as buyers are forced to bail out of their long positions.

 

Key intraday balance price level for NQ on Friday will be 7040.

-- NQ is bearish below 7040 with support at 7000. Should NQ breaks below 7000, we could see a fast and large drop.

-- NQ is bullish above 7040, but resistance is at 7080

 

NQ Guideline For Thursday

NQ again traded sideways in a narrow trading range again on Wednesday, with NQ closing down at the low of the day, setting up for a potential bearish day on Thursday.

 

Key price level for NQ on Thursday will be 7110 support and 7140 resistance.

-- The next strong support below 7110 is 7050, the 20-ma on the daily chart. If NQ should trade below 7110 it could quickly tank down to 7050 before bouncing. If the market do get very bearish and NQ breaks below 7050 we could see a fast and large liquidation decline.

-- If NQ should trade back above 7140, the next upside target is a break above Wednesday swing high.

NQ Guideline For Wednesday

After breaking back above the 200-ma on the 5-minute chart on Tuesday, NQ opened above the 200-ma on Wednesday, indicating a bullish day.

 

Then, after dropping back down to retest the 200-ma on several occasions, NQ then rallied all day in a slow choppy pattern, simply because the rally that started on December 24th 2018 is simply running out of steam, and in overbought territory on the daily chart, may be ready to go into a sharp decline.

 

Key intraday support on Wednesday will be 7140

-- Bullish above 7140, but overbought conditions on the daily could keep NQ in a choppy rally mode.

-- Trading below 7140 is going to be bearish but first support is 7100. with crucial support at 7050. A break below 7050 could trigger a waterfall decline.,

 

NQ Guideline For Tuesday

Again NQ opened with a huge gap-up and then sold off hard again. However, unlike last Friday, On Tuesday NQ crashed below key support but end of day profit-taking bounced NQ back up to close at key balance level, setting up a rally or a decline on Tuesday

 

The current NQ uptrend on the daily chart has lost most of its upside momentum and ready to crash down hard. The only thing still holding it up is the 20-day moving average on the daily chart. A break below could quickly tank NQ down hart, but remaining above the 20-dma implies more choppy and slow rally. 

 

Key inflection price level for NQ for Tuesday trading will be 7135

-- Bearish bias below 7135 with first support at 7100. Then if that does not hold the decline, the next support is 7050. A clear break below 7050 should trigger a sharp multi-days decline

-- If NQ should open and stay above 7135 on Tuesday we could see another rally but likely very narrow range and choppy.

NQ Guideline For Monday

As usual, a sideways trading pattern for NQ on Friday, with a gap-up open and a downtrend in the morning that was then followed by a rally in the afternoon with a close near the high of the day.

 

The rally momentum on the daily chart is getting very slow and with the rally in overbought condition. NQ would need to pullback down substantially to get more buyers to come back into the market.to reignite the rally. Until then we may continue to see slow choppy narrow range rally.

 

Key support price level for NQ going into Monday trading will be 7130.

-- Above 7130 NQ would remain in a bullish mode on Monday with the next upside target is a break above Friday swing high with normal trending target at 7190, and could pushes high if the market becomes very bullish

-- Trading below 7130 is bearish and could attract some selling with the next lower support at 7110. If that happens to break, the next lower support is 7040