NQ Guideline For Wednesday

The market rallied on Tuesday ahead of the long 4th of July weekend, likely being manufactured to rally to create a false sense that everything is ok.

However, it does seems clear that trillions and trillions of non-stop money printing seems by the Fed does not seems to have much impact any longer. Deflation is starting to overwhelm the Fed money creation. Sooner rather than later the market will start to go down, unless world central bank opt to hyper-inflate the paper currency system.

 

Tuesday was a trending day. It is usually followed by a choppy sideways day or a reversal day. As such we could see either a choppy day or a reversal day on Wednesday, a reversal from up to down.

 

Key Line-in-the-Sand on Wednesday will be 10,100, bullish bias above, bearish bias below

NQ Guideline For Tuesday

On Monday, after dropping down to support NQ reversed sharply reversed and then rallied all day into the close, with a very bullish close.

 

For Tuesday's trading, as long as NQ opens and remains above key line-in-the-sand on Tuesday we should get a rally day with upside targets at 10,100 or so

 

Falling back below the line-in-the-sand implies a change in biases from bullish to bearish, downside target is Monday low

 

Key line-in-the-sand for NQ on Tuesday will be at 9940

NQ Guideline For Monday

A large down day for NQ on Friday, with the open near the high of the day and the close near the low, a bearish close, the fourth pullback down day in a row, overbalancing all previous pullback time, a clear indications the uptrend may have ended.If so, we should see several more down days before it rally back up.

Key intraday line-in-the-sand for tomorrow will be at 9900.

-- Below 9900 we should see NQ making another lower low. Next lower support is 9800-9820. A sustained break below 9800 could cause a cascade of selling as trailing stop-losses gets run-over.

-- If NQ should trade back above 9900 we could see some rally back to 9970. Should NQ rally continues higher, the next higher resistance is at 10040.

NQ Guideline For Friday

NQ was engineered to break down below prior day low before reversing it back up, a false-break reversal type of day.

 

This type of day is usually followed by a trending up day. However, because Friday tend to be a choppy day it is possible NQ may just trade sideways on Friday.

 

Key line-in-the-sand for NQ on Friday will again be 10,040.

-- Resistance is 1010-10140

-- Support is 9940

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NQ Guideline For Thursday

On Wednesday NQ continued the Tuesday afternoon selling, tanking hard, ended with a large down day on Wednesday.

 

After a sharp and large downtrend in the morning NQ spent lunch and afternoon hours trading sideways in a consolidation range, with 10,040 as resistance and 9040 as support.

 

On Thursday NQ either:

1. Break above consolidation high 10,040 and spike up to the next higher resistance at 10,130 before dropping back down, or

2. Drop below support 9940, and tank to the next support level,9830, or

3. Unlikely but possible, NQ remains inside the trading range between 9940 - 10040.

 

Key line-in-the-sand for NQ on Thursday is 10,040.

 

NQ Guideline For Wednesday

NQ opened with a gap-up and in breakout mode, and rally until the afternoon when it eventually reverse very sharply back down.

 

The afternoon decline should continue into tomorrow morning to retest the breakout level, 10110-10145 zone. As long as 10110-10145 now acting as support hold on any decline to it, the rally should resume.to higher high.

 

A break below 10110 is very bearish as it could lead to heavy selling, tanking NQ down to 10020 or all the ways down to 9940

NQ Guideline For Tuesday

The market rallied on Monday with NQ being the most bullish among the major indices, and the Dow and Russell 2000 lagging behind..

 

Key Line-in-the-Sand for NQ on Tuesday will be at 10080.

-- As long as NQ remains above 10080 we could see another higher high above the recent high of June the 10th.

-- If NQ should starts to trade below 10080 we could see a quick drop down to 200-ma on the 5-minute chart.

 

The 200-ma is usually very a very strong support on the decline down to it. However should that break clearly we could see a sharp selling on a pullback up to it.

Market Commentaries For Monday

The stock market opened with a huge gap-up on Friday. After trading sideways for a short period of time after the open selling started to overwhelmed buying. The stock market started to tank hard. On the daily chart, the set-up is bearish.

 

The Dow Future, the YM is showing lower highs.

 

On an intraday basis the stock market is in sell mode. Thus on Monday, to change the bias from bearish to bullish, the market has to re-break back above its intraday line-in-the-sand, which, as of the close on Friday would be resistance level.

 

For NQ its L-I-S for Monday will be at 10,000.

-- NQ will remained in bearish mode below 10,000, with the next lower support at 9700. A break below 9700 is very bearish.

-- If the Fed can push NQ back above 10,000 on Monday we could see some shorts starting to cover, and thus can cause a short-covering rally.

NQ Guideline For Friday

The stock market traded sideways in a narrow trading range for the second day in a row on Thursday thus setting up a large trending move out of the range. With Friday tending to be a choppy sideways type of day it is likely we may not see a trending move until next weeks.

 

Key line-in-the-sand for NQ on Friday will ne 9990

-- Trading above 9990 is bullish with resistance at 9920. A sustained break above 9920 could lead to a sharp spikes as stop-loss get run-over. However, should NQ breakout and then reverse we could see a very sharp reversal.

-- Trading below 9990 is bearish with key support at 9940. A sustained break below 9940 could trigger selling to tank NQ down. A false-breakout leads to fast reversal.

NQ Guideline For Thursday

After two huge up days NQ traded in a choppy sideways trading pattern on Wednesday. On the daily chart, NQ is spotting a narrow range doji candle day, a perfect setup for a large trending day on Thursday, the direction of the trend would depends on where it trades in relation to the key intraday timeframe.

 

Key intraday timeframe on Thursday will be its ma on the 5-minute chart, which at the close of trading on Wednesday was at 9940. The trading action on Wednesday is indicating a down day on Thursday

-- However, as long as NQ remains above 9940 we could see a rally.

-- Trading below 9940 is an indication the trend i9s going to be down, with the next support at 9680