Monday, August 22, 2011

Trade Guideline for Tuesday (NQ)

Monday was a consolidation day, but rumours that the Fed may announce QE3 by the end of the week ignites some after hours buying / short-covering. Whether it would continue into tomorrow only time will tell.

Key level for Tuesday is 2050, with key support at 2030 for NQ (1110 for ES) and resistance at 2060 NQ.
  • Above 2060 short-covering has the potential to push price up to 2100.
  • Below 2030 NQ (1110 ES) the market is likely going into liquidation mode.