NQ traded sideways on Tuesday, in a very narrow trading range, ahead of the long labour day holiday weekend.
However, there is still a good possibility NQ could trend up tomorrow because when most traders and investors are now on a long weekend holiday, and if the Fed decide to push the market up they could easily do it when most are on holiday.
Support price level for NQ on Wednesday will be at 15,520, and potential trending up move above 15,620
A trend-up day for NQ on Monday with the open above price inflection zone which triggered a bullish bias day. It trend up all day into the close.
By the end of the day NQ was in deep overbought zone on the 60-minute and the daily time-frame thus vulnerable to a sharp pullback at any moment.
However, as long as it stays above key inflection price zone on Tuesday (15,590) the bias is to the upside. Breaking below it implies potential sharp drop down to support at 15,460.
A huge rally for NQ in the morning after Jerome Powell spoke at Jackson Hole, a very large buy programs likely trigger by the Fed to push thew stock market up. But it soon died down because there is no more buyers up at these level. The Fed may be the only buyer at this price level.
Key inflection [price level for NQ on Monday will be at 15,420, bullish above it and bearish below it, with first support at 15,360
Another sideways narrow-range trading action for NQ on Thursday. With central banks meeting in Jackson Hole this weekend, the market may just chop around as most institutional fund wait for more direction from the Fed regarding their monetary policy
As such, look for the market to continue to trade sideways until the news from the Jackson Hole meeting has been analysed by the majority of the market participant.
The market is bearish unless the Fed announces a more aggressive easy money policy.
An even narrower trading range for NQ on Wednesday as traders and investors wait for the news leaks from central bankers Jackson Hole's meeting.
When it starts to move, it could be a big move after two full days of consolidation. The direction of the next large move will depends on the news and on the technical price level line-in-the-sand, now at 15,350.
A very narrow range day for NQ on Tuesday as there is really no more buyers up here. After all the shorts that needs to cover has covered, there is no more momentum to the upside.
On Wednesday, NQ may need to pullback down to support to fine new buyers, or new buyers came into the market from somewhere and rally NQ further up.
Key support for NQ on Wednesday will be at 15,350, bearish below it, with first lower support at 15,280, and bullish above it, and if somehow new buyers shows up, we could see another rally day following a one-day consolidation..
A breakout day for NQ on Monday. Short-covering was triggered and lasted all day long. At the close, NQ close right at key inflection price level 15,320.
NQ will go into pullback consolidation mode below 15,320, and a continue to rally above it.
On Friday NQ rallied sharply in the morning, but then traded sideways in the afternoon, closing above key line-in-the-sand price level for Monday. The line-in-the-sand level is 15,070.
If NQ should open above 15,070, it would be bullish and would stay in a bullish mode as long any pullbacks remains above it 50-ma on the 5-minute chart.
A break below it on any pullback is an indication NQ rally has ended and that it is going into a pull-back down mode with the first downside target at its 200-ma on the 5-minute chart.
NQ opened with a huge gap-down on Thursday but immediately rallied closing the gap and then broke through all the resistances before pulling back down and then close at the neutral price level, 14,950, which will serve as inflections price level for Friday.
Unless we get market moving new before the open on Friday, we could see NQ trading in a choppy narrow-range all day simply because Friday tends to be choppy. If so, first resistance is 15,040, and support at 14,840.
Just a small mentioned of tapering by the Fed was enough to tanked the stock market in late afternoon. All major indices had broken and close below their respective 20-day moving average on the daily time frame.
Unless it can recover and rally back above their respective 20-dma, we could see a big sell-off very soon and it could happen on Thursday. If so the next support on NQ is at 14,700
Intraday inflection price level for NQ on Thursday will be at 124,940. The next resistance at 15,020, and support at 14,840
