NQ Guideline For Thursday

On Wednesday NQ rally stalled below previous pullback low before selling off very hard. It is an indication of a powerful downtrend in progress.

The selloff from resulted from the unwinding of the Yen Carry Trade stalled at the key 200-day moving average on the daily chart,and Wednesday was the second day of the bounce.

The 200-dma at 18,000 will be key support for NQ going forward. A break could cascade more selling. If NQ can stay above 18,000, we could see either a sideways action or a rally with resistance at 18,700-18,900

Japanese Yen Carry Trade and Iran-Israeli war still poses major risk to the financial market

NQ Guideline For Wednesday

NQ traded sideways on Tuesday, but NQ has rallied in overnight trading, an indication of a potential bullish day on Wednesday. However, where it opens on Wednesday in relation to its key inflection price zone is important in determining bullish/bearish bias..

Key inflection price level for NQ on Wednesday will be at 18,220, bullish above it, with the next resistance at 18,700-18,900, prior swing low now resistance, area where the rally may stall and where sellers may come in.

NQ Guidelien For Tuesday

The stock market has rebounded sharply from the crash low, with NQ Monday's low at the 50-day moving average on the weekly chart. & it was a measured move (1:1 drive down) from July swing high to Monday swing low

If most of the investors caught on the wrong side of the Yen Carry Trade has been forced out of their position we could see either a multi-day or multi-week bounce before crashing back down.

On the 5-minute intraday timeframe, key inflection price level for NQ on Tuesday will be at 18,050, bullish above it, bearish below it. If NQ can break above key intraday resistance at 18,400 we should see NQ rallying higher.

VIX spiked up to about 65 point level on Monday but closed down to about 35, indicating a calmer market on Tuesday, that is, as long as the war between Israel and Iran does not heat up.

NQ Guideline For Monday

Japanese Yen "Carry Trade" has blew up, and the market, Stocks, Bitcoin, has crashed in overnight trading.

NQ has dropped down over 1,000 points so far. and bitcoin has sold off  price down over 12k dollars.

No one knows what will happen as the market opens o Monday. NQ has broken below its 200-dma on the daily chart 17,800 and down to 50-MA on the weekly chart, 17,500.

We know there is a very strong technical support at 16,000, prior high  from Juyly 20213. If we get a big crash on Monday that would be a good level for potential bounce,

NQ Guideline For Friday

A very large selloff for NQ on Thursday following a huge FOMC-induced rally on Wednesday.

Strong overhead resistance from the 50-DMA & prior swing low which turned into resistance once broken, attracted so much selling that the market tanked all day low.

NQ tanked all day, over 800-points drop from the high, which is likely to cause huge havoc on Friday if support, at recent swing low,18,730 get clearly broken to the downside.

If 18,730 low is not violated we could see sideways consolidation pattern on Friday. 

If it is broken, the next major support is at 18,000, 200-DMA & prior swing high now support.

NQ Guideline For Thursday

A big gap-up opening for NQ on Wednesday ahead of the FOMC policy announcement in the afternoon. The gap-opening was above prior day high, as such it trend all day but it was very choppy.

Overnight, NQ has traded over 150 points above Wednesday closing price and starting to bump into overhead resistance at 19,720 area, a strong resistance coming in from the 50-day moving average and prior swing low now resistance.

The market rallied hard in anticipation of three Fed rate cut before the end of the year, startling at their next FOMC meeting in September

If NQ could push higher, the next higher resistance zone is at 19,850, the 50% retracement level from the high to the Tuesday low, area where many algos would be selling the rally.

Key intraday inflection p[rice level is at 19,460, bullish above it, bearish below it.

NQ Guideline For Wednesday

NQ dropped down hard on Tuesday dropping down to strong support before it stopped dropping.

Overnight NQ has rallied over 200 points from the close in anticipation of the Fed cutting interest rate in July.

However, given the current situation, the Fed is likely to no cut rate this time. As such we could see the bounce fade, and start selling off.

As long as the current technical support around 18,750-18,800 hold, profit-taking and support-buying algorith could still cause a big bounce.

Key inflection price level for NQ on Wednesday will be at 18,962, bullish above it, with upside target at 19,200, then 19,500, strong overhead resistance at 19,700

Bearish below 18,962 but NQ needs to clearly break below 18,700 to cause liquidation. If so, next downside target is at 18,200.

NQ Guideline For Tuesday

A sideways consolidation pattern again for NQ on Monday the second consecutive consolidation day following large trending down day.

Prior consolidation lasted for two consecutive days following large trending down dat. If the pattern is still continuing we should see a large trending down day on Tuesday,

If so we should see NQ dropping down breaking technical support and continue to trade below Thursday July 25th swing low at 18,887 and triggering stop-losses.

Failure to break below Thursday swing low is an indication NQ is either contuning to trade sideways or rally.

FOMC meeting starts on Tuesday, tomorrow with the announcement on Wednesday.

NQ Guideline For Monday

NQ traded sideways on Friday after bouncing from a very strong technical support on Thursday, likely to bounce for two to three days to retest the 20/50 days moving average on the daily chart.

Overnight NQ has traded above Friday swing high, nn indication we could see a large up-trending day on Monday, ahead pf the FOMC decision on Wednesday where the Fed is expecting to cut short-term interest rates.

If  we get a strong market rally. NQ upside targets is in the range of 19,450 to 19,650-19,700 area.

Key intraday inflection price level is at 19,200, bullish above, bearish below it.

NQ Guideline For Friday

NQ Traded sideways on Thursday with a bearish close as bounce from its 50-DMA got sold hard. With  NQ now closing for two consecutive day below its 50-DMA, the general market mode is to sell the bounce.

NQ may have to go all the way to the next downside target, the 200-DMA before we see a large multi day bounce. Its 200-DMA  is at around 18,000

Key intraday inflection price level for NQ on Friday will be at 18,120, bullish above, bearish below it.