A narrow range sideways consolidation day for NQ on Thursday following a large uptrending day on Wednesday.
On Friday, as long as NQ remains above 18,984 we could see either another sideways day or a trending up day, with the next upside target at 19,400-19,500. ECB cutting rates help boost global liquidity, bullish for the market.
Trading below 19,980 implies more consolidation before trending back up again.
A huge rally day for the equity market on Wednesday as easing cycles was has started, with the Bank if Canada cutting short term rates. This should soon be followed by the ECB the the US FED as the western economy starts to slow down fast.
This rate cut cycles should boost financial market, triggering rally into its final explosive capitulation phase, the speed of the blow-off top could be very very fast. NQ next upside target before a big correction is 21,000-22,000
On the intraday timeframe, following Wednesday massive up-trend we should see an 80% chance of a sideways consolidation, with NQ making a higher high in the morning or in the afternoon, and 20% chance of another trend up day on Thursday consolidation.
Friday was a narrow range choppy up day. With the equity market in deep overbought on all timeframes, without a large pullback the slow melt-up should continue.
Key support going forward is 18,600, bullish above it
A huge gap-up open for NQ on Thursday due to NVDIA earnings reports.
However, it was sold immediately because of several factors. One was that the Fed is planning to raise the Fed fund rate, not cutting it. The second reason is that the market was way overbought on all time frames. As such vulnerable to sharp drop as we can see on Thursday.
On Friday, ahead of the long weekend in the USA we could see NQ trading sideways. Key balance price zone is at 18,800. NQ may bounce back to it then bounce away from it.
Resistance is at 19,000 and support is at 18,550.
NQ traded sideways on Wednesday with a small selling after the released of hawkish Fed minutes from the last meeting, indicating a likely rate hike instead of a rate cut.
However, irrational exuberance after NVDIA earning report has pushed NQ almost 200-point higher in overnight globex trading, which may or may not continue after the open on Thursday.
If the shorts decides to cover and reverse long on Thursday that would imply a trending-UP day, we could see NQ rallying at least to 19,000 price level. The upside target before a large pullback is still at 19,400-19,500. Whether or not NQ will get there on Thursday is hard to say.
With the rest of the market not participating in the overnight rally, wwith Bitcoin and Gold both down overnight, we could see a gap-up reversal.
Key price level to watch after the open will be the opening price, bullish above it, bearish below it.
A very choppy narrow range trading pattern for NQ on Tuesday. Without any major pullback down move, the choppy narrow range pattern should continue.
Key intraday support for NQ on Wednesday will be at 18,930.
A narrow-range trading pattern for NQ on Monday. With NQ overbought and at doub-top on the daily chart, and the short-term pattern not showing any setup for a big move we could see another sideways choppy pattern for NQ on Tuesday.
One key exception is if the shorts get forced to cover above 18,700. If so we could see a strong trending move up. The probability of this happening is about 20%. The higher probability is for NQ to pull-back down (trade lower) before breaking out to the upside.
Key level to watch for breakout is 18,700. Trading below that is bearish.
Bitcoin and gold are both very bullish.
A sideways price action for NQ on Friday. With Friday being the second pullback day we could see NQ try to rally on Monday, the third day after a trend day is usually a continuation day.
The pattern on the daily chart is good for seting up a trend day on Monday, but on the shorter timeframe, the 60-minute chart, it is saying NQ should pull-back down further.
The key price level to watch for on Monday is 18,700.
Trading above 18,7010 is likely to trigger another round of buying programs. However, failure to do so implies more consolidation.
Key support isa 18,600. A sustained break below 18,600 could trigger heavy selling.with lower support levels at 18,400 and then 18,100
So far this evening, Sunday night, the market is indicating a neutral market and sideways pattern for Monday. The situation could easily change by the time the market opens on Monday.
A choppy sideways consolidation trading pattern for NQ on Thursday, typical pattern following a trending day.
On Friday NQ should continue to trade sideways, with key support at 18,600 and key resistance at 18,700
Lower than expected CPI number on Wednesday confirmed thaty rate cut is coming sooner than expected that triggered buy programs forcing shorts to cover resulting in a nice large trending up day on Wednesday.
With NQ high of the day at double-top, a sustained break on Thursday could trigger another wave of buy programs and short-covering that could push NQ to another new higher high.
Key intraday level for NQ on Thursday is at 18,700, bullish above, bearish below it indicating sideways consolidation pattern.
