On Friday, the market opened with a gap-up, then buy programs were immediately triggered designed to cause short-covering rally but it ran out of gas, and selling came in at around lunch hour that lasted into the close.
The war between the Fed buy programs and global deflationary forces will continue until the Fed loses. With global deflationary forces intensifying, the Fed has to substantially increase its money creation program if they are to forestall a global stock market crash. However, the Fed has to continuously juggle between preventing the dollar collapse or the stock market collapse, one or the other, and it cannot be both.
On an intraday timeframe, key support level for NQ on Monday will be 4330. The trend on the daily chart is just about to change from down to up.
-- As long as an decline does not clearly violate 4330, NQ rally should continue, next resistance is again 4400.
-- Breaking below 4330 implies the downtrend on the daily chart is still alive, first support is again 4300.
