With the Fed buy programs in full speed right from the open on Monday NQ trend up all day into the close, a third up days in a row. The rally that started from last Thursday swing low is now in its wave 5 up, and in overbought condition on the 60-minute chart, and may be ready to go into a larger pullback-down mode at any time now, but as long as the drop does not violate key support level, the rally should continue.
The Fed is likely to continue to buy the futures market on Tuesday in order to avoid the repeat of recent market collapse.Whether or not they are able to hold the market up against the backdrop of global credit contraction, only time will tell and it will depend on where it trades in relation to key price level.
For Tuesday key price support level to watch for in NQ is 3840.
-- As long as NQ can stay above 3840 on Tuesday it should continue to go up, next resistance is 3895, if that resistance does not hold, then 3930 - a strong resistance.
-- Breaking below 3840 could trigger algo sell programs that could tank NQ quickly down to 3790
