Relentless buy programs by the Fed engineered to squeeze the shorts continued on Friday, with NQ closing at the day high of the day at around triple-top price zone (October 3 & 8 high).
There should be many stoploss hiding just above 4040 triple-top price level, a very tempting level for the buyers to push above those level inorder to trigger another round of short-covering rally. At the same time, 4040 is certaintly a strong resistance level that has the potential to halt the current rally and reverse price back down.
So, for Monday 4040 will be a key price level to watch for.
-- Above 4040 is likely to trigger short-covering rally, next target us is September 19 swing high, 4115 area.-- Inability to break and or stay above 4040 area could attract some short-sellers, supports are 4000 and 3980.
