Trade Guideline For Monday

The US Fiscal Cliff discussion should continue to dominate the financial news and the market on Monday. Although the discussion is just a distraction strategy designed to hide the real issue of unsustainable debt level, traders and the Fed will use it as an excuse to trigger buy and sell programs, hence can exacerbate the momentum of the moves.

Key Level For Monday is 2620.
-- Below 2620 NQ is in a downtrend, and staying below 2600 could trigger another round of sell algorithm that could cause a fast liquidation decline, next support is 2560.
-- Above 2600 implies potential pullback up to 2620. It needs a clear and sustained break above 2620 to trigger a short-covering rally.

Fiscal Cliff Sideshow continues

Trade Guideline For Friday

Nasdaq broke below key 2620 support soon after the open on Thursday but quickly rallied back up above, closing just above 2620 support.

For Friday, support is 2600.

-- A break below 2600 could trigger another round of liquidation sell-off.

-- Above 2600 implies more consolidation. A sustained break above 2640 could trigger a round of short-covering rally, with next resistance at 2660, 2680 and 2690

Fiscal Cliff discussions should continue to dominate the financial news and the market..

Trade Guideline For Thursday

On Wednesday, NQ opened and quickly dropped down to key support at 2620 before consolidating and closing just below 2640 broken support now resistance.

2620 is a very important support for NQ. 

-- A clear and sustained break below could potentially trigger a cascade of selling, with the next support way down at 2560 then 2490.

-- If it can stay above 2620 NQ would either continue to go sideways or rally, with resistance at 2640 then 2660.

Trade Guideline For friday

Nasdaq continued to consolidate all day on Thursday closing just above 2690 key level. 
-- Below 2690 implies it is still in consolidation mode with supports at 2655 and 2640.
-- NQ would need a clear break above 2705 to trigger a short-covering rally.

Trade Guideline For Thursday

Nasdaq consolidated just above broken resistance now-support 2690, which is key support level for Thursday. 

-- A break below 2690 implies consolidation/pullback is still in progress with supports at 2680 then 2655.

-- A break-back above 2705 implies consolidation/pullback has ended, and the next round of short-covering rally is in progress, targeting 2740, then 2770.

Trade Guideline For Wednesday

Nasdaq opened on a wave 3 gap-up and then trend-up all day on Tuesday, closing at the day high, and in wave 5 up on the 5-minute chart from December 14 low. 

Once wave 5 up has ended, it should then reverse and retrace the entire 5-wave rally.

Key price level on Wednesday is 2705. 

-- A clear decline below 2705 implies W5 has ended and a retracement/consolidation is in progress, with supports levels at 2655, 2640.

-- Above 2705 implies W5 is in progress with the next resistance at 2740 and 2775.

Trade Guideline For Tuesday

Nasdaq stayed above key 2620 support level on Monday and then rallied, breaking above 2640 and 2660 resistance,  closing at the high of the day.

Support level on the March contract is now 2655 and 2640.

-- Above 2640 NQ should continue to rally towards the next key resistance 2692-2700

-- Below 2640 implies it is going back down to support 2615-2620.

The magnitude of the Liberal Democratic Party’s win in Japan’s election yesterday smoothens the path for fiscal stimulus in early 2013 as incoming Prime Minister Shinzo Abe seeks to end the economy’s contraction

http://www.bloomberg.com/news/2012-12-17/ldp-landslide-win-clears-pipes-for-japan-fiscal-spigot-economy.html

Trade Guideline For Monday - NQ

Key support level for NQ on Monday is 2620. A clear and sustained break below 2620 could trigger a round of liquidation selloff, with next potential support at 2600, but on a strong sell-off, NQ will slice through 2600. Supports below 2600 are 2580 then 2560.

Above 2620 implies more consolidation with resistance at 2660, 2680, 2700

US is fast approaching their fiscal cliff.

http://www.businessweek.com/articles/2012-05-17/the-fiscal-cliff-will-drive-the-u-dot-s-dot-into-recession

NQ Trade guideline For Friday

NQ is still stuck inside a trading range between 2620 support and 1700 resistance. Until we can get a clear break out of the range, it should continue to trade sideways.

Resistances are 2680, 2700

Supports are 2640, 2620

Trade Guideline For Thursday

Unable to break above 2700 resistance, NQ traded sideways in a consolidation mode on Wednesday  Unless it can clearly break above 2700, NQ should continue to consolidated or pullback down to support.

Resistance is now 2700 

Support is 2640.

Fed's announcement of QE4 to infinity did not help the market at all on Wednesday.