NQ Guideline For Wednesday

NQ traded sideways on Tuesday still hovering about key 20-dma, 8330, on the daily chart, now still acting as key support.

On Wednesday the 20-dma on the daily timeframe will serve as key support. A break below could trigger heavy selling, with he next major downside target remaining at 8100.

On the intraday basis, key inflection price level for NQ will be at 8380, bullish above it, bearish below it.

NQ Trading Guideline For Tuesday

On Monday after a brief morning rally soon after the open NQ reversed and drifted down eventually broken below the key 200-ma on the 5-minute chart.

 

On the 5-minute timeframe, NQ was in deep oversold as of the close on Monday, setting up a possible short-term rally at the open on Tuesday but then the daily chart traders should soon come back to sell, with key daily chart support at the 20-dma 8330.

 

A break below 8330 is bearish on the daily timeframe and could attract heavy selling, with the next lower target at 8100. However there are several supports that could temporarily stop the decline.

Trading Guideline For NQ on Monday

A huger gap-up open for NQ on Friday, but then it went flat for the rest of the day. The market may want to resume back down with or without morning rally.

 

Key inflection price level for Monday trading in NQ will be 8400.

-- Trading below 8400 implies NQ is going to trade down to lower levels, key support downside target is 8330 - 8340 area where it may bounce back up from those support zone. Should that support zone clearly break to the downside, we could see an acceleration of the downside move. with the next support zone at 8300-8320.

-- Trading above 8400 after the open implies another rally to retest November high.

 

NQ Guideline For Friday

NQ traded sideways for the second day in a row on Thursday, still digesting the big downmove from Monday and Tuesday large selloff days.

With Friday tendency to be choppy, we could see another choppy consolidation day on Friday, setting up a large down day on Monday.

Key support for NQ on Friday will be 8290.

-- Staying above 8290 on Friday implies choppy sideways or a rally.

-- Trading below 8290 could trigger some selling. However, to get a trending move on Friday the markets needs some unexpected market moving news.

NQ Guideline For Thursday

As expected the stock market continued to bounce from extreme short term oversold condition, which usually last between one to three days. As such, we could see resumption of the down move on Thursday.

 

Key short term inflection price level for NQ on Thursday will be 8280

-- NQ may continue to be choppy above it with resistances at around 8365.

-- Bearish below it, with key support at 8250. A clear and sustained break below 8250 could trigger heavy selling. Strong support is 8050 price zone.

NQ Guideline For Wednesday

On Tuesday, NQ opened with a huge gap-down below key 20-dma on the daily chart, 8300, but very quickly bounce off prior-high turned-support at 8165 area.

 

The market is now in extreme oversold on the short term timeframe, and may need to consolidate for a day or two before resuming back down to its next major support, the 50-dma on the daily chart, now at 8050.

 

Key short term intraday price level for NQ on Wednesday will be at 8220

-- Trading above 8220 on Wednesday will keep selling under control until it reaches resistance at 8300.

-- Trading back below 8220 is likely to trigger selling, but with stop-losses congregating below Tuesday swing low, NQ would need a sustained break below Tuesday swing low to trigger another round of algos selling. If so the next support is at 8050, although it is likely to get penetrated on an intraday basis.

NQ Guideline For Tuesday

The market sold off hard on Monday from overbought situation, the trigger was Trump trade war rhetoric.

NQ morning selloff over-shot the 20-dma to the downside on the daily chart on Monday but it closed just above the 20-dma on Monday, making the 20-dma on the daily chart, now at around 8300, a key line-in-the-sand on Tuesday and going forward.

Key intraday inflection price level for NQ on Tuesday will be 8320
-- Above 8320 we could see short-covering, with first resistance at 8360.
-- Trading below 8320 is bearish, but key support is now at 8300.

NQ Guideline For Monday

The market continued to manipulated upward for the thanksgiving weekend. The market is now in overbought zone on the daily timeframe, as such we can expect to see larger pullback decline this coming week.

 

Key line-in-the-sand for NQ for Monday's trading is 8430

-- If trading is above 8430, we could see the market going higher, with two upside targets at 8480 and 8520.

-- Trading below 8430 could cause more selling as shorter timeframe algos triggers selling, lower targets are at 8380, then 8330, but there is a very strong support coming in from November 19th swing high that could cause a bounce.

NQ Guideline For Wednesday

On Tuesday as expected NQ remained in the bullish mode, staying above 8370 key support and then rally, narrow-range and choppy . With the Thanksgiving on Thursday The Fed is going to continue to push the stock market higher.

 

Key support on Wednesday will be 8390.

-- If NQ can stay above 8390 after the open, we could see another choppy rally to next higher high, with the upside targets at 8410, then 8450 if they decide to trigger buy programs.

-- Trading below 8390 implies NQ is in a pullback down mode, with the next lower support at 8360

NQ Guideline For Tuesday

A large gap-up open followed by a trend up in the morning before trading flat for the rest of the day. NQ then closed above key intraday inflection price level for Tuesday, and that level is 8370.

With such a bullish setup for Tuesday, with the central banks certain to push the market higher into the long Thanksgiving weekend, as long as there is no unexpected market-moving new released on Tuesday NQ should either trade sideways or trend higher, as long as it stays above 8370, with the next upside target at 8400.

 

Should NQ trade below 8370 on Tuesday we could see a decline down to first support, now at 8320.