On Friday, massive buy programs engineered by the Fed before the open designed to trigger short-covering panic sent the indices higher at the open and rallying into the close.
We must keep in mind that there is a war between the Fed on one hand determined to inflate certain class of assets and the global deflationary force on the other hand pushing everything down.The battle should continue until the whole fiat currencies collapses as we are now starting to witness several currencies such as the Argentinian pesos, Venezuelan Bolivar, the Turkish Lira and the Indonesian Rupiah (just to name a few), beginning to collapse, but it should continue to spread
The markets closed near resistance on Friday, so unless we can clearly break and stay above resistance, look for the market to pullback in the morning or in the afternoon. Most shorts have covered on Friday so the fuel for any sustained rally has to come mostly from the fed buy programs.
Key resistance for Monday are 3575 for NQ and 1795 for ES.
-- A sustained break above 3575 implies a rally up to the next resistance 3595.
-- A sustained break above 1795 for ES target a rally up to 1810.
Below key resistance implies the market is going into a pullback mode. As long as pullback does not turn into a freefall the rally should continue back up.
Supports for NQ is 3530-3540, and 1770-1775 and 1765 for ES
Below key resistance implies the market is going into a pullback mode. As long as pullback does not turn into a freefall the rally should continue back up.
Supports for NQ is 3530-3540, and 1770-1775 and 1765 for ES
