A negative reaction to horrible employment number last week Friday might have scared the Fed enough to compel the fed to intervene aggressively on Monday as they triggered one of the biggest and relentless buy programs designed to trigger panic buying by the short-sellers.
As a consequence the stock market opened with a gap-down but immediately rallied up all day and into the close with a small profit-taking decline near the close.
Whether or not the rally will get sold on Tuesday will depends on what the market thinks the next Fed action is going to be. Already Goldman Sach is calling for the Fed to delay raising their interest rates. If so, the market should continue to rally on Tuesday. If not, the market is likely to sell-off.
Key price level for NQ on Tuesday will be 4350 resistance.
-- If NQ can trade above 4350 on Tuesday short-covering should continue.
-- Failure to clearly break above 4350 could cause NQ to pullback down to key support 4320-4330 area.
-- Clearly breaking below 4320 could attract major algo sell programs.
Gold is currently in a bullish Inverse Head & Shoulder pattern on the daily chart
