A heavily manipulated employment reports released before the market opening on Friday was a good enough excuse to trigger massive buy programs on Friday morning. However, morning rally faded as it failed to attract any new buyers. Thus NQ then spent the rest of the day trading sideways into the close.
How much longer can the market rally greatly depends on central banks policy going forward. The ECB, the BOJ and the BOE has officially announced more money printing but the Fed is yet to do the same.
The Fed is stuck between a rock and a hard place. They have convinced most market participants of more interest rate increase, and the market has priced in more rate increase, thus officially announcing more money printing will be a complete policy U-Turn, and could cause uncontrollable unintended consequences beyond the Fed's control. Announcing more QE to help Hilary Clinton win the election is a risky proposition. More QE from the Fed should continue to push the market higher but failure to announce more QE soon could intensify global deflationary forces, could cause stock market selloff.
But for now, the daily trend is still up. Absent of major change in central banks policy of easy money, the rally should continue for a while longer. NQ short term timeframe support on Monday has risen to 4760 price level.
-- NQ should remain bullish above 4760.
-- A larger pullback expected on a sustained break below 4760.
According to a Bloomberg article "Helicopter Money" is coming to the US
