With most traders out of the office for the long Easter weekend holidays last week, on Thursday the market just chopped around in a narrow range sideways action. Now that most traders will be back from the holidays on Monday, the market can now continue to make a directional move.
With the daily trend still in a bullish buy mode, and the Fed in coordination with all the major central banks, continuing to liquefy the market, the equity market should continue to rally, albeit, in a slow choppy and narrow-range uptrend, as deflationary forces continues to fight central banks buy programs.
On the short term timeframe, key inflection price level for NQ on Monday will be 4400.
-- Trading above 4400 may trigger some short covering rally, next upside target is a break above recent high.
-- Staying below 4400 could put some selling pressure on NQ with the first support at 4365. With the daily trend still up, I don't expect any sharp selling to occur unless some unexpected market-moving news hit the market.
