On Thursday, with the S&P 500 bumping against key resistance price level of 1940, relentless buy programs in the equity market and the crude oil market managed to clearly pushed both markets up, with the S&P clearly breaking and closing above 1940 key resistance.
With the public heavily short the markets, look for relentless buy programs to continue until most of the shorts are cleansed. The impact of the Fed buy programs should be short-lived, and once the cleansing of the shorts is complete, the bear market should resumed.
NQ is still trading below 4300 key resistance, but with the S&P 500 key resistance clearly broken, it is likely the short-covering in the S&P should be able to drag NQ above 4300 very soon.
Key inflection price level for NQ on the 5-minute chart on Friday will be 4210.
-- NQ should remains bullish above 4210, the next resistance is 4300.
-- Breaking below 4210 is an indication NQ is in a larger pullback down mode.
The chart below is indicating that the US market is not far from breaking down hard.
