With crude oil rallying again on Monday, the second consecutive up-day from the recent low, early morning sell-off in the stock market was aggressively being bought, likely by the central bankers, worried about the potential Greek debt default.
NQ dropped down to key support before mounting over 100 point rally from the day low, breaking through 4160 key line-in-the-sand price level, up to just below 4200 resistance.
Whether or not NQ will continue to rally on Tuesday, will depends on where it trades in relation to it key inflection price level of 4160, and also depends on what happen in the crude oil market.
-- Staying above 4160 is bullish, and should at least go to 4200 resistance. Breaking above 4200 could propel NQ up to the next resistance level, 4230 then 4250.
-- Breaking back below 4160 if accompanied by a sell-off int he crude oil market, is bearish, implying a re-test of the recent low 4080-4100 support zone.
