Trade Guideline For Friday

On Thursday, NQ opened with a gap-down below Wednesday's low and trend-down to August 24th swing low, forming a double-bottom, then consolidated the rest of the day. With Ben Bernanke set to give his speech at the Jackson Hole economic conference on friday morning, anything can happen, and it may or may not move the market.

Key level For Friday is 2755.

- Above 2755 implies more consolidation, with first resistance at 2750.

- Bearish below 2750, with first support at 2743. 

FT Pivot Levels
R1= 2767.25
FTP = 2758.75
S1 = 2745.75

Ben Bernanke is set to give his speech at the Jackson Hole economic conference on Friday morning, and it may or may not move the market.

Trade Guideline For Thursday

Another narrow-range consolidation day again on Wednesday. With most traders out of their office for the long labour day weekend, it may continue to stay inside the range until next week.

Upper range = 2790, Lower range = 2770

Trading range = 2770 - 2790

It would need a clear and sustained breakout of the range to trigger a trending move in the direction of the break. 

FT Pivot Levels

R1 = 2793.50

Pivot = 2782.50

S1 = 2774.25

Below is a QQQ (Nasdaq 100 tracking index ETF) weekly chart showing it is now at double-top

Trade Guideline For Wednesday

Another consolidation day on Tuesday, a continuation of the decline that started on Monday. If consolidation is complete, price should start to rally up on Wednesday, targeting a break above Monday's swing high before pulling back down.

Key level for Wednesday is 2780.
- Above 2780 is bullish, implies the next up-leg could commences at anytime, targeting a break above Monday's swing high before pulling back. A sustained break above reversal zone implies a trending up day.
- Below 2780 implies it is still in a consolidation / pullback mode, targeting a drop down to 2770, 2760.

FT Pivot Levels
R1 = 2792
FTP = 2781.50
S1 = 2772.50

Trade Guideline For Tuesday (NQ)

NQ traded sideways in a very narrow trading range on Monday, consolidating just below double-top on the daily chart. It is either consolidating just before breaking out above double-top on the daily chart, or a topping price action just before reversing back down. 

But whatever it may want to do next, only time will tell, key level for Tuesday is 2775.

-- Bullish above 2775, target a re-test of August 21 swing high, targeting a lower high or higher high.

-- But below 2775 implies consolidation is still in progress, next target down is 2760-2765. If that does not hold, next target down is a re-test of August 24 swing low.

FT Pivot Numbers

R1 = 2792.50

Pivot = 2784.50

S1 = 2775.00

Market Profile Number

UVA = 2789.50

POC = 2785.50

LVA = 2780.50

Below is a weekly chart showing SPY (S&P500 index ETF) currently trading just below its 2008 swing high, now acting as strong resistance.

Trade Guideline For Monday

Looks like Nasdaq may have completed an ABC zig zag retracement wave at the open on Friday morning, as it quickly rallied up to just below Wednesday's swing high before pulling back down at the end of the day on Friday, likely a wave 2 pullback.

If so, and once wave 2 has ended, price should quickly rally and rocket above Wednesday swing high (wave 3). A gap-up and trend-up on Monday would be a good indication of wave 3 in progress. ES is also displaying a similar pattern.

Key Level For Monday is 2770 area.

-- Bullish above, targeting a break above Wednesday's swing high, then Tuesday's swing high.

-- Below 2770 implies it is going back down to re-test Friday's swing low.

FT Pivot Levels

R1 = 2790

Pivot = 2775.25

S1 = 2755.25

Market Profile Numbers

UVA = 2784.50

POC = 2777.50

LVA = 2767.50

Below is a QQQ 5-minute chart, a nasdaq 100 tracking index ETF.

Trade Guideline for Friday

Another sideways consolidation day on Thursday trading between 2755 support and 2780. 

For Friday, trading above 2780 is bullish, targeting a move up to test of Tuesday swing high,

Trading below 2755 is bearish, targeting 2743 support.

FT Pivot Numbers
R1 = 2784.25
FT Pivot = 2769.25
S1 = 2745.75

Market profile Numbers
Upper VA = 2772
POC = 2763
Lower VA = 2760

Trade Guideline For Thursday

A consolidation day on Wednesday with an early morning false-breakout to the downside, then closing in the middle of Tuesday's trading range. Expecting more consolidation on Thursday if the open is inside prior day range.

Key Level For Thursday is 2775

-- Bullish above, target 2800 resistance.

-- Bearish below, target a re-test of Tuesday's swing low.

Jackson hole economic summit coming up soon.

 

Trade Guideline For Wednesday

A reversal day on Tuesday, with the gap-up opening and a quick run-up to resistance before quickly reversing back down and closing not far from the day swing low. This type of price action often lead to a 2 to 4 down days, unless the reversal day get negated by a re-break above the high.

Key level for Wednesday is 2775.

-- Above 2775 implies a potential rally up to 2785. A clear and sustained break above 2785 target a re-test  of Tuesday's swing high.

-- Below 2775 implies a potential decline down to 2765 support. A sustained break below 2765 could trigger another trending down move, with support at 2743, then 2722

FT Pivot Numbers
R1 = 2797.25
FT Pivot = 2779.25
S1 = 2756.25

Market Profile Numbers
Upper VA = 2787
POC = 2773
Lower VA = 2762

Trade Guideline For Tuesday

Another consolidation day on Monday, with price action staying inside  2765 support and 2786 resistance. Unless it can breakout of the range, we can expect another consolidation day again on Tuesday. 

A clear and sustained breakout of the range, however, would trigger a trending move in the direction of the break.

Trading range = 2765 - 2786 (2765 Support, 2786 Resistance)

FT Pivot Numbers

R1 = 2787.25

P = 2777

S1 = 2770

Market Profile Numbers

UVA = 2782

POC = 2780

LVA = 2772

Trade Guideline For Monday

A choppy up-trending day for NQ on Friday as it nears a double-top with April swing high which is at about 2786 area. 

As price approaches that key double-top level, the question we need to ask ourselves is what happen as NQ trades near that DT.

1. Will it breaks and rocket higher?

2. Will it falsebreak to higher-high and then collapse? or

3. Will it pullback before the break?

In reality, no one could know for sure, hence it is best for us to monitor price action daily, on an intra-day basis. 

For Monday, key level to watch is 2773 area.

-- Bullish bias above target up is 2786 area. A sustained break could cause a massive short-covering rally.

-- Bearish below, implies consolidation, with first target down to 2765, then 2743.

Pivot Numbers:

R1 = 2783.25

FT Pivot = 2773.25

S1 = 2766

Market Profile Numbers:

Upper VA = 2777

POC = 2775

Lower VA = 2770

Here is an NQ daily chart showing potential future price path, a reference guide.