A combination of profit-taking by the short-sellers and central bank buying programs rallied the market up on Tuesday, beginning with a gap-up open. No doubt there will be continual attempt to rally the stock market up again on Wednesday, however, strong selling pressure remains. NQ is now bumping against overhead resistance that is likely to attract short-selling.
For NQ, strong resistance resides at 4300 and 4325 where sellers would come in to sell. Unless the Fed has readied unlimited amount of capital to buy the stock market we could see NQ rallied up to 4300 - 4325 price zone then selloff from there.
However, a clear and sustained break above 4325 implies buyers are winning, and the next strong resistance is not until 4400.
