Another big up day in the equity market on Monday as the Fed continues to push the market up in their quest to squeeze the short-sellers in order to trigger short-covering rally. The Fed will be relentless in their pursuit as the global financial system gets closer and closer to total implosion.
It will come one day but the timing is not easy to forecast as the market is controlled by herd psychology. When will the herd turn and stampede for the exit? only time will tell. In the mean time, I will continue to follow the action of the market. With QE3 just around the corner the market may be bullish in anticipation of the eventual announcement.
For Tuesday I will use 2380 as my Key line-in-the-Sand
- Bullish above 2380, implies another upleg targeting a move up to re-test 2400, which is a key resistance for now. A break above 2400 may trigger a fast-moving short-covering rally up to 2450.
- Below 2380 implies NQ is in a pullback mode, targeting a move down to 2345, then if that does not hold, a further decline down to the next support level of 2310..
