As expected NQ rallied in a slow choppy action on Monday as the Fed buying algorithm continued to push the market up. But with everyone now already long the market the up trending move is slow and choppy. NQ closed just below the last swing high from March 01, 2017
Key price level for Tuesday will be 5400 which is just below prior spike swing high.
-- If NQ can clearly break above and stay above 5400 on Tuesday it could trigger a short-covering rally, which is exactly what the buyers would hope to accomplish.
-- Should NQ break above 5400 and then reverses back down, look for some sharp selling, but it could be brief, first support is at 5380 then 5370.
-- If NQ remains below 5400 on Tuesday look for choppy sideways price action with support at 5370 - 5380 and resistance at 5400
Bond continue to be sold. The 10-year Treasury yield rose 5 points to 2.625%, breaking above December 2016 high. At this pace, the yield will soon double from the record low of 1.36% in July last year.
