On Tuesday, as expected, the Fed buy programs caused the markets to open with a huge gap-up, with NQ opening above first resistance and rallied, broke above strong resistance, and continued on to rally all day, again with a close at the high of the day.
The Fed buy programs should continue, with or without a paused, designed to run-over all the trailing stop-losses. However, once all stop-losses has been exhausted, the market will need more than just buy programs and short-covering to continue to push the market higher, the market would need genuine buying interest.
Key resistance to break is now 4000.
-- Failure to clearly break above 4000 could attract short-sellers, support is at 3930.
-- Breaking above could result in another large up-day on Wednesday, next resistance is 4050.
