A huge gap-up on Monday triggered short-covering rally, with NQ closing near the day high. With key inflection point at 2220 and key support at 2200.
- Above 2200 implies the uptrend should continue.
- Above 2220 may trigger another round of short-covering, targeting a quick move up to 2255-2260.
- Below 2200 implies NQ would likely decline to re-test support at 2275-2280.
European sovereign debt crisis should continue to dominate the financial news, with their main focus on Italy. Should ECD and the US Federal Reserve not come to the rescue by printing money the Euro endgame is just around the corner. But with the mainstream economist all disciple of Keynes, whose only known solution to every economic problem is money-printing, we should expect another round of money-printing by at least the Central Banks of the G7 countries. If so, look for the stock market and gold to rally.
