Hints of more money-printing by Bernanke caused a large gap-up open on Monday that triggered another round of short-covering rally which lasted the whole trading day, from open to close. The short-sellers capitulated into the close as NQ close at the high of the day.
For Tuesday, we may see either a continuing rally in the morning followed by profit-taking pullback, or profit-taking in the morning that should be followed by a rally, or just a consolidation/pullback day on Tuesday. Whatever it will be would depend on where NQ trades in relation to key inflection level for Tuesday.
Key level for Tuesday is 2765.
- Above 2765 implies continuing rally, next upside target is 2800.
- Below 2765 implies it is going into a pullback or consolidation mode, first downside target is 2745-2750
Hint of more money-printing by Ben Bernankie
