NQ Guideline For Monday

On Friday NQ sold off hard, started with a huge gap-down, then trend down all day with a close at the low of the day.

The low was just above strong support provided by prior swing high, and should hold, NQ should resume its rally on Monday. 

However, a violation of 11,150-11,200 support is an indication selling pressure is intense and bearish for the market. With the election coming in early November, the Fed is likely to try to provide as much liquidity into the market to cause the market to rally into the election.

Key intraday line-in-the-sand for NQ on Monday will be at 11,300.

Bullish above with upside target at 11,450 the 200-ma on the 5-minute chart. Bearish below 112,300 with support at 11,150-11,200

 

NQ Guideline For Friday

A narrow range choppy trading pattern for NQ on Thursday as sellers and buyers continues to be in balance. On Friday we could continue to see another choppy sideways trading pattern as traders balances their books

Key line-in-the-sand for NQ on Friday will be at 11,550, support at 11,480 and resistance at 11,660

NQ Guideline For Thursday

On Wednesday NQ opened above 20-ma on the 5-minute chart, and then quickly rallied triggering massive short-covering activities rocketing NQ up to key resistance zone between 11,480-11,550 zone, before selling came back in to sell.

The pattern is clearly a distribution pattern, as such we should continue to see wild swings until distribution is complete and then selling overwhelm buying completely.

On Thursday 11,340 will be key line-in-the-sand for NQ. Above 11,340 we could see NQ rallying back up to test the 11,480-11,550 resistance zone.

Below 11,340 we could see NQ dropping down to support at 11,150-11,200

NQ Guideline For Wednesday

Following a huge rally day on Friday that continued into Monday, NQ traded in a very choppy narrow trading range on Tuesday, setting up a potential large trending day on Wednesday especially if the trend direction is up.

Key support for NQ on Wednesday will be at 200-ma on the 5-minute chart. If NQ happens to trade below 200-ma on the 5-min chart we could see a quick decline to support between 11,150-11,200. As long as 11,050 is not clearly violated it should bounce and rally back up from it.

Key resistance on Wednesday will be at 11,340. Trading above 11,340 could start to trigger short-covering rally, with first potential resistance at 11,500.

NQ Guideline For Tuesday

On Monday, with the hope of imminent 2.2 trillion dollars unsanitized money printing the market gapped open higher, but  has to consolidate before running back up, now on wave 5 rally leg from September 24 low.

NQ can continue higher as long as it stays above 50-ma on the 5-minute chart. Breaking below 50-ma on the 5-minute chart implies end of current wave 5 upleg, and a return to choppy sideways price action, with downside target at 200-ma on the 5-inute chart.

Key line-in-the-sand for Tuesday will be ayt 11,340.

 

 

NQ Guideline For Monday

A massive short-cover rally on Friday, whatever the cause may be, pushed NQ back up into key resistance on the daily chart, the 50-day moving average, a critical level going forward, to break or not to break 

A sustained break above has the potential to cause more short-covering rally, and of course, failure to break would cause a massive sell-off again, back to test the recent low.

On the 5-min chart, at the end of the day on Friday NQ was in overbought on the 5-min timeframe, and may pullback down on Monday.

If so, we could see a sideways consolidation day on Monday with key support zone between 11, 010 to 11,050.

If 11,00 or so support can hold, we should see another rally day on Tuesday.

If on the other hand, sellers came back in a massive way, we could see another liquidation day on Tuesday.

After a big down day on Wednesday NQ spent all day trading sideways on Thursday consolidating the big sell-off day on Wednesday.

Key to trend direction on Friday will be where NQ trades in relation to its key line-in-the-sand, which for tomorrow will be the high of Thursday (11,000) and the low of Thursday (10,710)

With today's setup very similar to last week Thursday setup, we could see similar pattern, with a decline in the morning and then profit-taking rally in the afternoon.

Trading inside the zone 10,710 - 11,000 will keep NQ in a sideways pattern. .But with NQ now clearly below the 50-dma on the daily chart, we could see a free-fall if NQ should breaks below Thursday low and cannot recover.

 

NQ Guideline For Thursday

Tuesday high was at key 50-day moving average on the daily chart, a key line-in-the-sand buy/sell price level for longer-term traders. As such, with the open below 50-dma on Wednesday sellers came to sell immediately.

NQ sold off all day from open to close, and with the close near the day low, setting up a bearish day for Thursday.

Key support for NQ on Thursday will be at 10,850.

--  Below 10,850 NQ is in free-fall

-- NQ will go into a pullback consolidation mode above 10,850, with key resistance at the 200-ma on the 5-minute chart.

On Tuesday, after the early morning consolidation NQ trend back up making a higher high above morning high in the afternoon, spotting a 5-wave rally from Monday swing low. At the end of the day, NQ was still in wave 5.

For Tomorrow, a break below 50-ma on the 5-minute chart is an indication that wave 5-rally has ended, and that NQ is going into a consolidation or a reversal. A consolidation or a reversal implies a decline towards the 200-ma on the 5-inute chart.

NQ high of the day on Tuesday was at key 50-ma on the daily chart, a critical level going into Wednesday, a line in the sand resistance going forward.

 

NQ Guideline For Tuesday

After dropping down to lower low below Friday low soon after the open on Monday NQ reversed and rallied the rest of the day on Monday.

With NQ breaking and closing above key resistance 10,850, now support going into Tuesday trading, it sets up a bullish tone for Tuesday.

With NQ in overbought zone on the 5-minute chart at the close, I would be looking for a pullback in the morning on Tuesday before it rally again, that is as long at it does not break below key support, 10,850.

Breaking below 10,850 is bearish, and it is expected to decline again, target is a break below Monday low.