A gap-reversal UP day on Monday ahead of the decision on the US fiscal cliff.
It seems some kind of a decision was reached early Tuesday morning. Whether or not the decision is bullish for the market only time will tell, but it is very likely the Fed will continue to push the stock market up in an attempt to delay the US inevitable collapse.
On Monday, NASDAQ rallied up in a 1-2-3 wave or ABC wave pattern from the day low. Key level to watch for on Wednesday morning is 2640.
-- If pullback can stay above 2640, NQ is likely in a 1-2-3-4-5 wave up pattern, with wave 5 going higher high after wave 4 pullback is complete.
-- Breaking clear and staying below 2640 however implies it was ABC wave up from Monday's low, once completed, expect consolidation or trend reversal. Supports are at 2620, 2595. A clear and sustained break below 2640 implies ABC wave up has ended.
Fiscal Cliff issues should continue to dominate the financial news and the market on Wednesday.
