NQ stayed inside a trading range on Friday after failed morning breakout attempts.
Key level to watch for on Monday is 2620, but it needs a sustained breakout of the 2600 - 2540 trading range to trigger a fast trending mode.
On a daily chart, the last 4 days looks like a sideways consolidation setup for fast and large liquidation day or days. However, a sustained break above 2640 would imply that it is still in a pullback (up) mode, targeting 2700 resistance.
Ben Davies at KWN reported that 'the European default process is about to become disorderly. Bank capital is scarce and fully endangered as good collateral is scarce. The credit transmission will be in crash mode, ECB will react with 3rd LTRO, and the Fed will power up the US Dollar SWAP Lines".
Spain's "Indignados (Indignants)" demonstrate at the Puerta del Sol square in the capital Madrid on May 12, 2012 to decry economic injustice and the government’s tough austerity policies.
Spain's "Indignados (Indignants)" demonstrate at the Puerta del Sol square in the capital Madrid on May 12, 2012 to decry economic injustice and the government’s tough austerity policies.
