Last Friday stock selloff panicked the Fed enough to cause the Fed to turned dovish again. Every time the Fed threatened to raise interest rate, even though most don't believe they will do it, the stock market selloff hard. There will come a time in the very near future when no one would buy the Fed propaganda any longer, and that would be when the market simply unravel. The timing of the collapse is difficult to predict simply because it is no longer an economic event, it will simply be driven by herd mentality.
On Monday, dovish comments by the Fed helps their buy programs pushed the stock market back up to level before last Friday market drop. This kind of whipsaw market action is going to continue going forward as the Fed continues to fight the forces of deflation.
Key support level for NQ on Tuesday will be 4740.
-- As long as NQ can stay above 4740 selling should remains under control, and could rally or simply trade sideways. The next resistance above 4740 is 4800.
-- Trading back below 4740 is likely to bring back selling activities, first support is 4700.
