Guideline For Thursday

After making a lower low on Wednesday, NQ consolidated the rest of the day. Once consolidation ends, it should trend back down again. Whether or not consolidated has ended on Wednesday only time will tell.

Key level for Thursday is 3130.

-- A clear and sustained break below 3130 implies NQ is ready to trend back down.

-- Above 3130 is an indication that NQ is still in a pullback mode, with upside target at 3160 area.

Janet Yelling was appointed as the next Fed Chairperson

Guideline for Wednesday

The equity market tanked hard all day on Tuesday following the announcement of a NO-DEAL on the the debt ceiling negotiations - which implies the United states is likely going into a technical default on its debt if agreement is not reached by October 17, 2013, with the ramifications that is unknown.

Tuesday's selloff must have scared the Fed, with Obama scheduled to announce the appointment of Janet Yellin - who is the ultra money-printer, as the new Fed Chairman, in the hope of avoiding further selloff, and triggering a market rally.

All market indices declined down to support on Tuesday, and with the announcement of the new Fed chairwoman after hours on Tuesday, it is possible that we may get a countertrend rally on Wednesday. If so, it should then trade and stay above key level.

NQ key price level / inflection point for Wednesday is 3160.

-- Above 3160 could trigger a short-covering rally, with resistance at 3180-3190 then 3205.

-- Below 3160 implies NQ is still going down, with the next support at 3140, a very strong support level, and it will take a very bearish market to clearly break below 3140.

Guideline For Tuesday

The equity market opened with a large gap-down on Monday, triggered algo buy programs that quickly pushed NQ up into near gap-close before reversing back down to re-test the opening low at the close.

The Dow, S&P and NQ futures all closed at or near key support - which can trigger a large rally or tank hard, likely in the morning.

NQ key support = 3205

ES key support = 1664

YM key support = 14,850

--- Holding above key support could attract algo buy programs pushing the markets higher.

--- Breaking below key support could cause a fast drop down to the next support level, 3180-3185 for NQ, 1650 for ES, 14600-14650 for YM

As long as there is still no agreement on the debt ceiling look for the Fed to come in to buy any market decline.

Guideline For Monday

The market rallied all day on Friday and into the close as traders closed their short position for the weekend, with NQ closing near the high of the day, and in overbought condition on the 5-minute chart. For Monday morning it is likely to pullback down into support before rallying back up again.

Key level for NQ in the morning is 3230.

-- Opening and staying above 3230 on Monday morning implies the morning trend is up, with upside target at 3260 area.

-- Below 3230 is an indication that NQ is going into a pullback-down mode before going back up again, with support at 3205 and then if the market is really bearish, strong support at 3185-3190.

Debt ceiling debate is still going to influence market movement, until it is settled, the market is going to stay choppy.

Guideline For Friday

A large down-day for NQ on Thursday morning, then consolidated the rest of the afternoon, with a close just below key level. 

For Friday, key level in the morning is 3205.

-- Above 3205 implies NQ is still in a pullback mode, target 1:1 up is 3220.

-- Bearish below 3205, with first target down is a re-test of Thursday's swing low, with the next support at 3180.

-- A sustained break below 3180 could trigger a liquidation decline, with algo selling potentially going into full force with next support at 3140.

Guideline For Thursday

NQ consolidated between 3250 resistance and 3220 support on Wednesday, and as long as it stays inside the 3220 - 3250 range on Thursday, consolidation should continue.

Breaking below 3220 implies likely decline to next support 3200-3205.

Above 3250 may trigger short-covering with next upside target 3260-3265.

Guideline For Wednesday

A trending up day on Tuesday for NQ with a close near the day high. Depending on where it opens and trade in the morning on Wednesday, NQ either continue to rally up or pullback down and consolidates.

Key level for Wednesday is 3240.

-- Above 3240 implies NQ is continuing up right away to the next target, 3265-3270 zone before consolidating.

-- Below 3240 implies it is going into a consolidation mode target down move to 3420-3430. Though not expected (but with the fiscal cliff debate continuing anything can happen), below 3420 implies a decline down to the next support 3200-3205

Guideline For Tuesday

On Monday, a large gap-down opening was immediately bought triggering a short-covering rally that pushed NQ back into the prior established trading range 3200 - 3240. 

For Tuesday it should continue to stay inside the range, with either a morning rally up to resistance or a gap-up open into resistance, before dropping back down to the middle of the range, unless of course the government shutdown can cause it to get out of the range.

For Tuesday key level to watch for is 3220 mid-point of the trading range.

-- Above 3220 is an indication NQ is going up to the 3240 resistance zone before pulling back down towards 3220 area.

-- Below 3220 implies it is going back down to 3200 support.

Keep in mind that the US government shutdown can have a major unexpected impact on the markets as the algo traders are going to be active.

Guideline For Monday - NQ

NQ continued to trade sideways between 3200 support and 3240 resistance, with 3220 as the middle (inflection) point. 

With the fiscal cliff debate still ongoing, I would suspect NQ would continue to trade inside the range, unless of course, some large insider fund has the information not available to the public. If not, NQ should continue to trade sideways. 

For December ES (S&P 500 futures) it continue to trade sideways inside the range between 1682 support and 1700 resistance.

Guideline For Friday -- NQ

Another sideways consolidation day on Thursday, trading mostly between 3215 and 3235 as investors wait for the fiscal cliff negotiations to end. 

I am looking for more of the same for Friday, with support at 3220 & 3200 and resistance at 3240 & 3255.