NQ Guideline For Wednesday

On Tuesday after opening above 5335 support and  trading above 5335 support in the morning but unable to gain any upside traction NQ eventually broke below 5335 support and remained below 5335 support for the rest of the day.

 

NQ has remained inside a trading range between 5310 support and 5360 resistance for the last six trading day, setting up for the next breakout, up or down.

 

Inflection price level for NQ on Wednesday remains at 5335, with resistance at 536- and support at 5310.

-- Trading below 5335 is bearish for NQ, unless NQ can break back above 5335 it could start to attract selling.

-- Breaking back above 5335 should keep sellers at bay. NQ may try to break above recent high before profit-taking selling come back in.

 

All eyes on President Trump on Tuesday night as he appeared before joint session of congress for the first time, just to hear what he has to say.

NQ Guideline For Tuesday

On Monday NQ opened with a gap-down below key support, but buyers were ready to buy and overwhelmed sellers. NQ slowly rallied back up above resistance and spent the rest of the day rallying up in a very and narrow range fashion.

 

On Tuesday as long as NQ can remain above 5335, the rally should continue, next upside target is a break above recent swing high. Trading back below 5335 is likely to trigger selling to take NQ down to retest support at 5310

 

The stock market is currently still in a strong and fast up-trending parabolic mode, the type of trend that could end abruptly and reverse sharply. The end of the current uptrend should be not too far away.

 

NQ Guideline For Monday

On Friday, after opening gap-down below prior day low, NQ slowly but steadily rallied all day, crossed key resistance on the short term 5-minute chat just before the close, setting up a gap-up and run-up trading pattern for Monday. Target for the next up day is a break above last week Thursday swing high.

 

The above scenario will be invalid is NQ opens and trade back below 5335, as trading back and staying below 5335 is an indication selling algorithm is coming back into selling mode. If so, the next support is 5310.

NQ Guideline For Friday

NQ opened above trading range high on Thursday but failed to stay above the high as NQ quickly dropped back into the range, signaling a false breakout situation and indicating a fast reversal back down as breakout traders get run over on the ways down. A usual target for a false breakout is a break below trading range low.

 

On Thursday, it was a classic textbook pattern. Once the downside target was reached, NQ reversed back to test the breakdown price level, 5335, from below.

 

5335 will now become key resistance for Friday.

-- Failure to break back above 5335 is an indication selling programs could come in to sell, downside target is Thursday swing low.

-- Breaking back above 5335 is an indication NQ is going to rally back to above Thursday falsebreak swing high. 

NQ Guideline For Thursday

NQ remained inside a narrow trading range between 5335 and 5355 on Wednesday. All the major stock market indices remains in a parabolic move up, setting up a blow-off top.

 

A blow-off top usually ends suddenly and reversal will be sharp and relentless as overleveraged traders and investors get forced out of their long position and get liquidated.

 

On the short term time frame, key price levels for NQ on Thursday will be 5335 support and 5355 resistance. A sustained break could trigger sharp moves in the direction of the break

 

Margin debt is the loans banks and brokerages make to investors, using their stock- and bond-holdings as collateral. High level of margin debt foreshadows market collapse. It peaked in March 2000, congruent with the market’s March 24 top and subsequent 49% decline. And it peaked again in July 2007, a few months before the market top in October.

NQ Guideline For Wednesday

After opening with a gap-up and then trend up in the morning NQ traded sideways for the rest of the day. All the major equity indices are in a parabolic move up.

 

Investors sentiment is at an all time high, in extreme bullish mode, setting up for a major stock market parabolic top that is often followed by violent reversal simply because everyone is now long the stock market, as such when selling commences there is no one on the opposite side of the trade, i.e. no one to buy.

 

On the short term 5-minute timeframe, NQ support for Wednesday is 5335.

-- Staying above 5335 on Wednesday implies NQ is still in a fast up-trending mode, next upside target is a new higher high.

-- breaking below 5335 is an i9ndication NQ is going into a pullback mode, the next support level is 5315.

 

NQ Guideline For Tuesday

The market was closed on Monday for the President's day holiday. But  on Friday last week the market continued to rally in a fast mode. The pattern should continue going forward.

Short term time frame (5-minute) support on Tuesday will be 5315.

-- As long as NQ stays above 5315 on Tuesday the current fast mode rally on the daily chart should continue.

-- Trading below 5315 is an indication NQ may be going into a pullback down mode.

 

NQ Guideline For Friday

Following a massive rally on Wednesday NQ simply traded sideways in a consolidation pattern on Thursday. With Friday's tendency to traded sideways, there is a high probability NQ may continue to consolidate its recent rally as long as it can stay above key support.

 

Key support for NQ on Friday will be 5290.

-- IF 5290 support remains intact on Friday look for NQ to either trade sideways or rally to another higher high.

-- Trading below 5290 could trigger sell programs to take NQ down to the next support level, 5260

NQ Guideline For Thursday

The stock market continued to melt up on Wednesday as major central banks continues their massive counterfeiting activities disguises as quantitative easing (QE).

 

The melt-up  should continue until all the three major currencies, the Euro, the USD and the Japanese Yen hyper-inflate, as the velocity of money and inflation numbers has now started to pick up.

Key inflection price level for NQ on Thursday will be 5395.

-- Trading above 5395 is an indication that NQ is still in a rally mode without consolidating.

-- Breaking below 5395 implies consolidation before resuming back up again.

NQ Guideline For Wednesday

After pulling back down to support in the morning Q resume the rally to another higher high on Tuesday. The pattern should continue as long as support continue to hold.

 

Key inflection price level for NQ on Wednesday will be 5265.

-- As long as NQ can stay above 5265 the rally is going to continue. Next upside target is a higher high above Tuesday swing high.

-- Trading below 5265 is an indication NQ is going to pullback down to support first before resuming the rally. Key support is 5250.