The Fed buyers were ready with buy programs on Monday as the market opened with a huge gap-down, threatening to unleash massive selling algorithm that could cause a stock market crash.
This type of choppy price action where a big down day would be followed by a big up day is going to continue until the indices break below their 50-day moving average on the daily chart, which for NQ currently stands at 5262.
Current key resistance for NQ is now its 20DMA on the daily chart, which is currently ay 5385 area.
-- Failure to clearly break back above 5385 is going to attract sellers. If so, the next support is at 5370. A sustained break below 5370 is going to attract more selling, and the next support is 5310.
-- Breaking above 5385 is likely to trigger some buying and short-covering, with the next upside target is a break above recent high, 5440
Gold is currently trading just below its 200-DMA. A break above 200-dma could cause massive short-covering rally.
