NQ Guideline For Thursday

The usual overnight ramp up by the Fed gap the market up at the open on Wednesday. Buy programs continued all day with the closing price near the day high. 

With the Fed getting more worried of deflationary collapse, the ramp up should continue on Wednesday night and into Thursday for the end of quarter window dressing.

Resistance for NQ on Thursday will be 4200 then 4300. 

NQ Guideline For Wednesday

With all the major indices in a downtrend, sell the rally crowd has been winning the day since the FOMC decision over a week ago. 

On Tuesday NQ rallied sharply in the morning only to be sold off most of the day with the usual profit-taking rally into the close.

Tuesday swing low 4040 for NQ was at the lower end of a strong support zone. Failure to bounce from 4040 is bearish, and a clear and sustained break below 4040 is likely to attract major selling algorithm and a quick tank down to August low at 3900.

Current stock market decline seems to be following the pattern of the 1929 deflationary collapse. It should continue to follow the same path until the Fed announces some kind of a QE4

NQ Guideline For Tuesday

Heavy selling pressure hit the market right from the opening bell on Monday. The sell-off continued all day on Monday with NQ closing near the low of the day. Monday was the second large down day in a row. If the current decline pattern follows the prior decline leg in August, look for NQ to have a third large range down day on Tuesday.

With NQ low of the day at strong support zone between 4050 - 4100, a bounce is possible on Tuesday. If so look for a sideways consolidation day.

However, staying below 4100 price level has the potential to attract algo sell programs that can tank NQ down to re-test August low at 3900.

As we can see from the Brazilian ETF chart below, Brazil stock market has been selling-off since September 2014

NQ Guideline For Monday

The Fed buying binge on Thursday night last week, designed to cause a huge gap-up open in order to trigger a short-covering rally, failed to incite buying panic at the open on Friday.

After trading sideways Friday morning massive selling orders hit the market after lunch causing the market to collapse into the afternoon, closing not far from the low of the day.

As the Fed get more desperate in trying to avoid stock market collapse due to increasing deflationary pressure, look for overnight buying binge during thin market trading volume to continue, with the opening gap getting sold.

Until the Fed announces massive QE4, look for selling pressure to continue, unless the Fed is successful in pushing the market up above key technical level. For now, all the major stock indices, the Dow, the S&P 500 and the Nasdaq are in Sell Mode.

Key price level for NQ on Monday will be 4200 support.

-- NQ is in free-fall below 4200, next support is 4100.

-- Above 4200, selling pressure should subside, with NQ trading sideways or rally back up to 4300 resistance.

Velocity Of Money is still tanking

NQ Guideline For Friday

NQ opened with a huge gap-down and after trending down to 4200 support in the morning, rallied back up to close the gap before pulling back down a little bit near the close.

For Friday, as long as NQ can stay above 4200 support look for NQ to either trade sideways or rally up to the next resistance 4300.

Though unexpected, breaking below 4200 is likely to trigger major algo sell programs, next support is 4100. 

NQ Guideline For Thursday

A sideways consolidation day in the market on Wednesday with NQ closing right at key inflection price level, 4270.

With the market totally influenced by international events, particularly events in China and the crude oil market, anything is possible.

- But trading above 4270 implies NQ is going up, first resistance is 4300.

- Trading below 4270 is an indication the downtrend has resumed, next support is 4200.

NQ Guideline For Wednesday

NQ opened with a large gap-down and then ran down to just above 4200 support before bouncing for the end of day profit-taking rally.

Unless NQ can break back above 4300 previous support-now resistance NQ should continue to go down, then next support us 4200.

Global deflationary forces is starting to accelerate and unless and until the Fed is ready to trigger QE4, look for the downtrend to commence.

NQ Guideline For Tuesday

A sideways trading action for NQ on Monday staying below 4360 resistance but broke slightly beelow 4300 support.

For Tuesday key price level to watch for will again be 4300 support and 4360 resistance.

Velocity Of Money continues to tank, implying a deflationary depression is in the card.

NQ Guideline For Monday

A down day for the market on Friday with NQ dropping down to 4300 key support and a close just slightly above support, a bearish close. 

Bearish momentum should continue on Monday but it needs to break below 4300 to confirm more decline to 4200 lower support.

As long as NQ stays above 4300 NQ either rally or just trade sideways between 4300 support and 4360 resistance.

Margin Debt

NQ Guideline For Friday

The market spike up and down right after the release of the FOMC decision on Thursday with NQ closing near the low of the day, setting up a bearish close. But with a highly manipulated market with the Fed actively in the market supporting the market, anything is possible.

If the end of the day bearish momentum continues on Friday lookf for another down day for NQ on Friday. To do so, NQ should stay below 4375. The next support is 4340.

Staying above 4375 implies NQ may go back up to resistance

FOMC reactions: Bond and Bullion Rip, USD Dips, Stocks Slip