NQ Guideline For Tuesday

Massive overnight buying programs on Sunday night continue into the morning, and by the opening bell NQ opened with a hug gap-up designed to force the short sellers to cover.

 

Soon after the open, NQ rallied up to strong resistance, around 5783 area, the location of both the double-top resistance and the resistance at the 20-day moving average on the daily chart.

 

5783 will be the location of the key price level on Tuesday, and as of the close on Monday, it was still acting as resistance.

 

Without a gap-up open above 5783 on Tuesday NQ may have to pullback down to support before attempting to break above 5783 resistance.

 

Key support zone for NQ on Tuesday will be 5720-5730 area.

 

Appearing on CNBC today BMO's Jack Ablin says liquidity is the liquid of life for the rally.

If it weren't for liquidity, the stock market rally could be ripping apart, according to BMO Private Bank's chief investment officer.

Jack Ablin says investors have been encouraged to take on risk due to the trillions of dollars being pumped into the system by central banks.