On Tuesday, NQ opened with a gap-down and then after quickly dropping down to 5825 support, NQ spent the rest of the day in an up-trending mode.
It is getting clearer and clearer by the day that investors are choosing to keep their money in stocks as a hedge against collapsing dollar. As the US dollar tank day after day the stock market continues to make a higher high day after day, a clear trend towards dollar hyper-inflating.
Here below we can see that Zimbabwean stock markety index continued to rocket higher during their recent episode of hyperinflation of their currency.
And the same thing is now happening in Venezuela as their currency collapses their stock market continues to rocket higher.
On the short term time frame, key support for NQ on Wednesday will be 5855
-- As long as any NQ pullback down can stay above 5585 it is going to try to break above its recent record high at 5903.
-- However, a break back below 5855 is going to attract some selling, first support is again 5825.
Recently the IMF said in their recent report that the US dollar is up to 20% overvalued.
