The equity futures market opened the globex trading session with a large gap-up following the news that Larry Summers has withdrawn his application for the next Fed chairman. That makes Janet Yellin, the ultra money-printer, the prime candidate for the next Fed Chairman.
Whether or not the regular trading session will open with a big gap only time will tell, but janet Yelling's appointment should send shock wave to those holding short position in the equity market, and could trigger a capitulation move up to exhaust the current uptrend making a short term top, then pulling back down before reversing back up for the annual Christmas rally.
Key level for Monday is 3175 as support and 3200 as resistance.
-- Above 3200 should trigger more short-covering, may reach the next target 3250.
-- Below 3200 implies NQ is pulling back down to 3275..
