The market rallied into higher high in the morning on Monday then pulling back down to support into the close, and it looks ready to rally back up again into higher high on Tuesday, but as long as key support is not clearly broken, a break would be a bearish sign.
The new Fed Chairperson will testify before congress on Thursday. Look for the Fed buy programs to go into high gear to ensure that Janet Yellen would look great when she testify before congress on Thursday. Whether or not they will be successful in pushing the market up, only time will tell.
Key support for NQ on Tuesday is 3680, and for ES it is 1844.
-- Above support price level, look for NQ and Es to run up again into another higher high. Next upside target for NQ is 3725, for ES 1870
-- A clear break below key support is likely to trigger algorithm sell orders targeting next support 1838 for ES, 3670 for NQ.
Gold continued to rally, next resistance is 1360-1380 area.Breaking above 1380 could trigger a fast short-covering spike.
