On Wednesday it must have been massive central banks overnight buying binge that causes the equity market to open with a huge gap up.
Under normal circumstances, in a free market, Wednesday's opening gap would clearly be an exhaustion gap at after a sustained parabolic rally. But the equity market and most markets for that matter are grossly manipulated by central banks with the money they counterfeit at record amount, disguised as quantitative easing or simply called QE.
There is a real possibility that the current fiat money system is nearing the end, and with central banks counterfeiting money at insane rate, currency collapse which is commonly referred to as hyperinflation, is now a very likely possibility because central banks has to continue to increase the amount just to keep the system going.
Hyperinflation has definitely hit the real estate market in the US, UK, Canada, Australia, China, Hongkong, just to name a few countries, as home prices continue to melt up at an accelerated rate.
Whether or not the current parabolic move up in the equity market the beginning of a hyperinflation phase, we just have to wait, as there is not way to know in advance. If it is the beginning of hyperinflation, then the equity market should continue to rally at an accelerated pace. However, if is not the beginning of hyperinflation, then the current gap-up is an exhaustion gap, if so, it should reverse back down in not too distant future.
In order for the current rally to keep going, any pullback down should not break back down below Wednesday swing low, and definitely not below gap-close, that is, not below Tuesday closing price.
Staying above Tuesday closing price implies the current up-trending move should continue, and the pace could accelerate.
On the very short term 5-minute timeframe, inflection price level on Thursday will be 5390.
-- Staying above 5390 implies NQ is going to make another higher high before pullback back down due to profit-taking by short term traders.
-- Trading below 5390 could forced traders to exit their long position. If so, key support is at 5955-5960.
Here is Venezuela stock market index as their currency hyperinflates
Here is Israel Stock Index
