Sunday, May 6, 2012

Trade Guideline For Monday

NQ gap-down and trend down all day on Friday, closing at the day low, implies buyers capitulated into the close. For Monday morning it can continue down as long as it stays above key level.

Key level For Monday is 2640.
  • Above 2640 implies it is going into a pullback/consolidation mode, first target is 2655 area.
  • Below 2640 implies it is going into another round of liquidation mode targeting 2600. If that does not hold then 2570.