Sunday, August 7, 2011

Trade Guideline For Monday (Nasdaq NQ)

With the US debt downgraded by the S&P after the market closed on Friday, the stage is set for a volatile day on Monday and volatile week. The US Federal Reserve would surely come in to support the market come Monday if not already tonight Sunday night. Whether they are going to be successful in supporting the market and preventing it from crashing in an environment of quickly contracting global credit as a result of the downgrade only time will tell, come Monday.

Friday's low is key support for Monday. If that level is clearly broken to the downside we may get a crash unless the is a concerted intervention by G7 central banks. In a crash all bets are off as price can tank and tank.
Posted by at