Monday, October 10, 2011

Trade Guideline for Tuesday (NQ)

A large gap-up opening on Monday, as expected, triggered an open-drive up trending short-covering type of day, closing at the day high. With the Bank of England, the European Central Bank and the Federal Reserve all printing paper money like crazy the bullish uptrend should continue.

On Tuesday as long as it can stay above key support zone.  However, a break above prior swing high 2285 may trigger some profit-taking pullback down.

Key Line-in-the-Sand for Tuesday is 2265.
  • Above 2265 implies the market is still in a nice uptrend, targeting a break above 2285 swing high to 2300-2310 zone.
  • Below 2265 implies nasday is in a pullback mode before going up again. If so, pullback target down are 2215-2220. On a strong downtrend the next support is 2200.
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