Another trending-up day on Monday with NQ making a higher high above prior swing high. For Tuesday it is likely that algo traders may want to gap the opening price up clearly above 3251 prior high to cause a short-covering spike, but anything can happen between tonight and the open.
Key price level to watch for on Tuesday is 3251 area.
-- Above 3251 can cause a short-covering spike or rally with the next resistance at 3260 area but it can easily break above that resistance if a break above 3251 can trigger short-covering rally.
-- Breaking back below 3251, which will become support in the event that price opens or breaks above 3251 in the morning, is bearish and cause cause a fast liquidation decline, with support at 3220 and 3200
With Obama determined to push the US into defaulting on the debt so he can destroy the republican party, we are not expecting any deal soon, but anything can happen, so always be on the lookout for the unexpected.
