Going forward, with both the Dow and the S&P 500 still trading below their respective key 50-day moving average, the stock market is still vulnerable;e to a sharp sell-off.
NQ was trading well above its 50-day moving average, rallied in a big way on Friday. Should the Dow and the S&P breaks above their respective resistance, NQ should explodes higher
A break above their respective resistance zone should also cause a sharp rally for the Dow and the S&P as those holding short position in the market would be forced to cover their position fueling the rally.
The Fed buying algorithm is fully aware of that and thus very likely to do whatever it takes to push the market above resistance.
On Monday, first support for NQ is 6860.
-- Any decline to it is likely to be bought. A break below implies larger decline.
