With the market ready for a massive sell-off right from the opening bell the Fed plunge Protection Team was immediately active with massive buy programs. Although they were successful early in the morning the sell-off resumes into late afternoon. With Obama stimulus speech they were compelled to create a rally to show that the market likes Obama's stimulus program.
Key level to watch for at the open on Tuesday is 2200. If we are going to have follow-through short-covering price will break and stay above 2200.
- Above 2200 I will be looking for NQ to rally up to resistances, 2220, 2240, 2260 then 2300. 2300 is a very strong resistance.
- Below 2200 implies NQ would likely test Point-of-Control support at 2160 area. If 2160 does not hold then I would expect further decline down to 2100.
