As expected, Friday was a bullish day, with NQ opening with a gap-up and then trend up all day, closing neat the high of the day.
With expectation of increasing QE sooner rather than later, the market should continue to be very bullish moving forward.
Whether or not we would get morning pullback before rocketing back up, only time will tell and it will depends on where NQ trades in relation to its inflection price level.
For Monday, inflection price level is 3415 area.
-- Trading above 3415 implies NQ is trending up to its next target levels, 3425, then 3450.
-- Below 3415 is an indication that NQ is going into a pullback consolidation mode before resuming the next uptrend. Support on any pullback is 3400.
We must not get fooled by the Fed Taper talk shenanigan. Fed's taper talk is intended to delay the inevitable collapse of the US dollar.
With more and more countries abandoning/dumping the US dollar/bond, the Fed as the only buyer in town, has to step in a buy them back. Bigger and bigger QE is on the way until the US dollar collapses, because tapering QE or simply not increasing QE will results in the following nightmare scenarios no one wants to see happens.
1. Skyrocketing interest rates
2. Collapsing stock market
3. Collapsing real estate market.
4. Skyrocketing debt service payments.
5. Massive US dollar appreciation that will destroy the US economy.
6. Deflationary depression
Perpetual and ever increasing QE is extreme bullish for the stock market. Just look at the Zimbabwe's recent experience.
