A slow rally on Thursday ahead of the Easter weekend with a late day break above 2810 resistance. Whether or not the Thursday's rally momentum would continue into Monday depends on where it trades in relation to the broken resistance 2805-2810, now support.
Funds are flowing out of Europe, scared by the Cyprus situations, and running for shelter into the North American markets thinking that it is going to be safe, but it is not. It is just like jumping from a frying pan into a boiling pot. But the short-term impact is bullish for the North American Equity market.
On Monday, if price stays above 2805-2810, it may trigger a short-covering rally, with the next resistance and target at 2830.
A break -back below 2805 implies NQ is pulling back down to support area around 2775-2780.
Cyprus bank accounts confiscation is a template for future bank failures in Europe, the USA, Canada and beyond. Apparently, the plan was agreed upon at the last G20 meeting in Moscow. So from now on, every bank account, anywhere in the world, is at risk, if the bank fails, so we must wisely choose where to put the money and in what form. Make no mistake, NO bank account, anywhere is safe.
As the government around the world get more desperate, they would get more determined to steal the money from savers in order to bail out their failing banks who bought their sovereign debt they default on. This trend is going to continue for a while until the whole system collapses.
Cyprus just happens to be the first.
