NQ Guideline For Tuesday

A gap-up opened for NQ on Monday trapping the shorts, triggering short-covering acttivioties all day on Monday into the close.

This type of day is usually followed by another higher-high, it could also be another trending up day but it is more likely a sideways day, with either a nmorning rally that reverses or a morning pullback followed by a rally.

Key support level for NQ on Tuesday will be at 13,225, bullish above with first resistance at double top, 13,325, if it can break through that look for sharp short-covering rally to the next target at 13,390.

NQ Guideline For Monday

NQ traded sideways on Friday, the usual Friday pattern, trading between support and resistance.

Key indicator to watch for on Monday will be the 10-year treasury yield of 1.50% and NQ price level of 12,950.

If 10-year treasury yield can stay below 1.50% and NQ can trade above 12,950, we should see NQ rallying up to 13,200 as first upside target.

Below 12,950, we could see another down day for NQ, especially if we see a spike of the 10-year treasury rate above 1.50%.

NQ Guideline For Friday

The stock market tanked very hard on Thursday as the 10-year treasury yield spiked above 1.50% critical algos trigger level.

Going forward, this pattern will continue, massive selling in the equity market when yield spike above 1.5%. regardless of where the support is, and massive buying when yield drop back below the 1.50% critical level..

The 5-year treasury yield level of 0.75% is also is also very important. Thus, for Friday, watch the 10-years yield key level of 1.50% and the 5-year treasury yield of 0.75%.

Bullish market when yield is below those critical threshold, and bearish stock market when the yields are above those levels, and will not respect support or resistance level.

NQ Guideline For Thursday

Wednesday was day 7 on the current downtrend that started on February 16th, and it was a reversal day, a huge rally day..

At the close NQ was trading above minor resistance, and set to trend up to the next resistance at 13,400 followed by stronger resistance at 13,500. With a lot of shorts having to cover, NQ could easily break above 13,400.

However, the key indicator to watch is the 10-year treasury yield. As long as the 10-year treasury yield does not spike above 1.5% overnight, we should see short-covering pushing the equity market higher in the morning on Thursday. Should the yield spike above 1.5% we could see massive selling come Thursday morning.

NQ next upside target is between 13,400 to 13,500, which will be key resistance going forward. Key support is at 13,120

NQ Guideline For Wednesday

Tuesday was the 6th consecutive down days for the equity market, and Wednesday will be the 7th day down from the recent high.

Monday night spike in 10-year yield to almost 1.4 percent triggered massive selling in Nasdaq stocks. It took the Fed a while to reverse the selling and reversed the trend.

Key for Wednesday will again be the 10-year treasury yield. Should the yield breaks above 1.5 percent we could witness a tremendous stock market crash, may break the next strong support zone between 12,200-12,400

If the Fed can keep the yield below 1.4% on Wednesday we could see a rally or a sideways trading pattern, resistances are 13,400-13,500

NQ Guideline For Tuesday

Massive selling in NQ stocks on Monday as the 10-year treasury yield pushes higher towards the critical 1.50% key level, a level where many algos would start triggering selling programs in the equity market that the Fed may not be able to control.

On Monday with the open clearly below its 20-moving average on the daily chart, and is heading down to the 50-moving average on the daily chart, at around 13,000-13,100 price zone. 

As long as the 10-year treasury yield does not breakout above 1.50% level, 13,000 should provide temporary support for NQ

Should 13,000 support clearly break we could see another round of selling

NQ Guideline For Monday

After  trending down sharply starting at midday on Friday NQ traded sideways (bear flag pattern)  into the close. setting up a sharp selling on Monday, as long as NQ does not breakout to the upside above 13,650..

Key price level for NQ on Monday will be at 13,650. NQ would need to trade above 13,650 to change the trend from down to up, with key support at 13,540.

If NQ  breaks and stays below 13,540 we could see NQ dropping down sharply, with the next support at 13,400. It is a strong support, but with so many trailing stop-losses just below 13,450, there is a high probability that 13,400  support would not hold. A bearish sign would be a spike in the VIX volatility index.

NQ Guideline For Friday

Another strong decline for NQ on Thursday morning but reversed and trend up all day into the close. Friday may be likely to be a sideways pattern as usual.

How it trades in the morning would depends on where it opens in relation to its line-in-the-sand for Friday, 13,600, bullish above, bearis below but look for it to be a sideways trading day, unless it breaks out of the range, with resistance at 13,720-13,740 and support at 13,500.

NQ Guideline For Thursday

Massive spike in 10-year treasury rates spooked small cap stocks, triggering huge gap-down open in Nasday NQ. It continued to sold-off until the Fed were above to pushed the treasury yield down.

The decline in the 10-year yield looks choppy, and could set up another surge in yield. Breaking above 1.50% could crash the stock market particularly stocks in Russell 2000 and Nasdaq indexes.

NQ sold off hard in the morning on Wednesday, then rally when treasury yield started to decline. The inverse correlation between yield and stocks should continue. Rising yield is bearish and falling yield is bullish.

Key level for NQ on Thursday will be at 13,750, now resistance, and wil turn into support on a clear and sustained break above it.

NQ Guideline For Wednesday

On Tuesday NQ opened with a gap-up above Friday close, then after closing the gap, rallies back up in A-B-C wave pattern before reversing and dropping back down to key support.

NQ spent the rest of the afternoon trading sideways consolidating the large decline, usually implies a continuation after the consolidation has ended, whicm means we should get anothe down leg on Wednesday.

NQ intraday pattern on the 5-minute chart looks like it could rally on Wednesday simply because 13,740 support seems to be holding up quite well. To rally however, NQ has to stay above Tuesday low, which is key support for Wednesday, and then break above 13,800 to run-over trailing stop-losses for the shorts.

Failure to do that sets up a large decline especially if NQ can break below Tuesday low, 13,720 and continue lower.