On Friday last week, on the back of the Fed's back-door QE via the Bank of Japan QE and massive overnight buying binge by the Fed algo buyers, the stock market was pushed up substantially higher by the opening bell while precious metals such as gold and silver were whacked really hard, just to paint a healthy economic outlook post QE.
With the US mid-term election this coming week it is a certainty that the Fed would continue to push the equity market up while whacking the precious metal market down, and they will come in to buy any attempted sell-off attempt by the short-sellers. As long as no major technical damage is inflicted by the sellers, look for the current uptrend to continue.
Key price inflection level for NQ on Monday will be 4145, key support is 4135, strong support at 4100.
-- Above 4145 is an indication NQ is still in a fast mode up, next target will be 4200, whether it will get there in one day or two only time will tell.
-- Trading below 4135 could trigger algo sell programs, but strong support resides at 4100, and should hold. But as always, anything is possible, particularly with the extremely manipulated market conditions we are currently in.
