The market continued to rally in a slow choppy fashion on Monday, making it the fourth up-days in a row for NQ. The choppy slow rally is either be a setup for a pullback-down move on Tuesday or a running correction, a setup for an explosive up-move on Tuesday.
If it is a setup for a pullback-down move then it should decline on Tuesday by breaking down below key support price level. But if it is a running correction, which is a setup for an explosive move, then it should continue to push higher and trigger a fast short-covering rally.
Key inflection price level is 3545 for NQ
-- Trading above 3545 implies NQ is still in an uptrend, and if it continues to push higher, could trigger a fast short-covering rally, with the next resistance at 3600.
-- Trading below 3545 is an indication NQ is in a pullback-down move, with key support at 3530. As long as 3530 hold in any decline NQ uptrend should resume after a pullback.
-- However, clearly breaking below 3530 could trigger momentum sell algo programs, with support at 3500.
Conflict in Ukraine continues to get more serious by the day, and it should continue to have substantial influence on the actions in the markets..
