NQ Guideline For Wednesday

The stock futures market indices has stared to crash with Dow and the S&P Futures down big time and NQ down over 240 points as the election results so far is showing a possible Donald Trump winning the US Presidential election.

If in fact Donald Trump wins the Presidential election we can see a massive stock market crash come Wednesday morning if in fact they will open the stock market for trading

 

The election result winner may not be obvious until much later into the night, but look for the stock market to crash if Donald Trump wins, and looks for a the stock market to bounce back up if Hillary Clinton wins.

 

If in fact Hillary Clinton wins the Presidential election, key price level for NQ for Wednesday will be 4800.

-- A clear break above 4800 should trigger some short-covering rally as short-sellers who has gone short betting on Trump's  victory will have to cover.

NQ Guideline For Tuesday

Massive buying programs by the Fed that started on Sunday night continue into Monday and very likely to continue non-stop into Tuesday in order to help elect Hillary Clinton. A Trump presidency is not a risk the Wall Street bankers is willing to take.

 

For NQ key resistance on Tuesday will be 4800 price zone. It is where both the 50-DMA and the 20-DMA on the daily chart resides, and they are acting as resistance with price currently trading below them.

-- Failure to clearly break above 4800 is likely to attract sellers that could overwhelm the fed best effort.

-- A clear break above 4800 could trigger some short-covering.

 

With the market fully pricing in Hillary Clinton's win, look for potential massive selling to occurs if in fact Trump would win. Expect the unexpected.

NQ Guideline For Monday

Double-bottom support on the daily chart did not get violated on Friday as NQ simply traded sideways staying in a narrow trading range.

 

With the US presidential election just a few days away the Fed is likely to flood the financial system with massive liquidity to ensure the market rally big in order to help elect their puppet candidate Hillary Clinton. A trump victory could spell the end of the Fed and that a risk they cannot take.

 

It looks like the buy programs has already started on Sunday night and is likely to continue into Monday trading, and likely to results in a huge gap-up opening. With the stock market in deep oversold territory on Friday looks for massive rally on Monday unless of course some unexpected negative news for Hillary Clinton hit the newswire and deflationary forces overwhelm the Fed

 

Key price level for NQ on Monday will be 4700.

-- A break-back above 4700 could trigger profit-taking and short-covering activities likely to cause a huge up-day. Resistance are at 4740 and then 4760. Strong resistance zone is around 4800.

--  If the Fed is not able to keep NQ above 4700 look for NQ to remains under strong selling pressure.

NQ Guideline For Friday

Another large down day for NQ on Thursday. Attempted bounce off the 4700 support failed to attract any buyer, NQ then broke below 4700 support and proceeded to drop to lower low without the usual end of day buy program bounce.

 

Many traders and investors are positioning for a possible Trump winning the presidential election on Monday. Trump winning is certain to crash the stock market and many traders are positioning their bet to gain from Trump winning.

Key price level for Friday will now be 4700 previous support now resistance.

-- Trading below 4700 should keep NQ under intense selling pressure.

-- NQ needs to break-back above 4700 to relieve some selling pressure.

NQ Guideline For Thursday

NQ continued to sell-off but remained above 4700 support. Whether or not NQ would crash through 4700 support and tank quickly to the next support zone at 4500 only time will tell. But Wednesday was the seventh down days in a row for NQ and a one or two days bounce is in the cards.

 

However, a bounce is not a guarantee. A strong declining momentum of this current selloff may in fact be able to keep pushing the market lower. With the Fed inability to raise interest rates to keep the international capital flowing into the US market, the market selloff can continue. A Trump election victory is almost certain to crash the stock market and many investors may be exiting the market ahead of the election in anticipation of a Trump victory.

 

Key support for NQ on Thursday will remains at 4700.

-- If NQ remains above 4700 selling should be muted, NQ either just consolidate sideways or rally, with first resistance at 4755.

-- A clear and sustained break below 4700 is going to unleashed another rounds of selling, next potential support at 4650 but strong support is not until at 4500-4550.

 

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NQ Guideline For Wednesday

Wednesday is an FOMC policy decision announcement day.

NQ opened just above 4800 key support on Tuesday but then sold off immediately. An attempted lunch rally failed to break NQ back above 4800 support-turned resistance which is just an excuse for major algorithm to sell the market hard.

 

NQ dropped down to just above 4700 support before the Fed buying algos managed to rescue the market and ramp it up into the closing bell, a type of window dressing for the Fed ahead of their decision on Wednesday afternoon.

 

With the market fully pricing in Hillary Clinton's victory a surprise Trump victory is likely to crash the stock and the bond market hard. Donald Trump winning chances is just getting better and better by the day.

 

Key inflection price level for NQ on Wednesday will be 4745, with first support at 4700 and first resistance at 4790.

-- Trading above 4745 should keep sellers at bay and could rally NQ back up to 4790, a strong resistance where many sellers are waiting to sell again.

-- NQ will remain under tremendous selling pressure below 4745, but support remains at 4700. With the FOMC decision to be announce in the afternoon, look for the Fed to remain active in the market. 

NQ Guideline For Tuesday

NQ traded sideways in a very narrow range on Monday hovering mostly above 4800 well defended price zone. Whether or not NQ would have to bounce for 4800 before finally crashing down below it only time will tell.

 

But 4800 price support zone is getting weaker and weaker by the day, and with more and more stop-losses congregating just below it, a clear and sustained break has the potential to quickly tank NQ down to the next support level, 4700.

 

On the 5-minute timeframe, key price level for NQ on Tuesday will be 4820.

-- If the Fed can push NQ above 4820 and keep it above 4820 selling should remains muted and under control.

-- Failure to push NQ back up above 4820 resistance is bearish but NQ would need to clearly break below 4800 to trigger selling algos. In case of a clear break below 4800, the next lower support is 4700.

 

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NQ Guideline For Monday

NQ traded sideways on Friday, staying mostly between 4800 support and 4840 resistance. The fact that NQ breached that 4800 critical support level several times on Friday is an indication that 4800 support may be ready to break next time it gets tested.

 

Early Friday morning ramp failed to get NQ to break above 4840 resistance, and when the early afternoon re-test of 4840 failed to break above it, aggressive selling activities came into the market and sold NQ hard. 4800 price level continued to be aggressively defended, but it has been weakened.

 

Deflationary forces continues to drag the market down, the market looks very vulnerable to heavy selling. Bearish momentum divergence on the daily chart continues to get more pronounced.

 

On the short-term timeframe, key price level for NQ on Monday will be 4840.

-- If the usual overnight ramp could not keep NQ above 4840 sellers will come back in, support remains at 4800.

-- Staying above 4840 should keep sellers at bay. However, it would requires massive buy programs to push NQ above 4840.

 

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NQ Guideline For Friday

For Friday, another large down bearish day, or a sideways consolidation day. The key support is 4800.

A large selloff in the equity market on Thursday. NQ opened with a large gap-up, but selling commenced immediately and continued into the close. The closing price for NQ was just above key support of 4800.

Amazon's earning misses announced after the market was closed on Thursday could have a strong negative influence for trading on Friday. A break below 4800 is likely to trigger an avalanche of sell orders, the next support is 4700. However, with the Fed not willing to let the market selloff before the November presidential election, look for 4800 support level to be well defended.

On the 5-minute time frame, key price inflection level will be at 4840, with strong resistance at 4860 and strong support at 4800.

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NQ Guideline For Thursday

A bearish day in the equity market on Wednesday after Apple earning report announcement on Tuesday. The forces of global deflation is starting to overwhelm central banks buying programs. Unless central banks are willing to create more currency than the forces of deflation destroys the beginning of a major stock and bond market collapse may not be very far away.

 

Bearish momentum divergence on the daily chart continues to get more intense, key support level for NQ remains at 4800. A clear and sustained break below 4800 is likely to trigger massive selling algorithms that is likely to overwhelm the Fed.

 

On the short term intraday timeframe, key price level for NQ on Thursday will be 4860.

-- Trading above 4860 should keep sellers at bay, with the next resistance at 4880.

-- NQ will be under selling pressure below 4860 with the next support at 4840. If 4840 does not hold on Thursday it is likely to trigger algo sell programs that can quickly tank NQ down to key support at 4800.  

 

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