Massive intervention by central banks in the bond market pushing yield down and buying the stock market has temporarily prevented the stock market meltdown, with all major indices positive a rally day.
The sovereign debt crisis is starting to get out of control again and the problem is very likely to start in Italy then spread worldwide, and it is very likely to start getting out of control in June 2018.
For NQ, the daily chart is still showing a bullish configuration, on its wave 5 up from the last test of its 200-dma support at the end of April NQ looks ready to break above its wave 3 swing high, and when it does, it is going to run-over many stop-losses congregating just above wave 3 swing high (7013) triggering large rally day.
On the 5-minute timeframe, key price leve for NQ going into Thursday will be 6960.
-- NQ is bullish above 6960, and any pullback is a buying opportunity.
-- If Italian crisis is going to again negatively affect the market, a break below 6980 is going to trigger some selling, next support is again 6860.
