The battle between the forces of deflation and the central banks buying continues, with rally in the morning that got sold in the afternoon, another sideways trading day on Monday.
The battle should continue, but for now the buy side is winning simply because the market is now solidly above key support price levels on the daily chart. And as long as the market continues to trade above their key support level, the algorithms will continue to be on buy mode.
For NQ, short term intraday support is at 6960.
-- As long as overnight buy programs is able to force NQ to open above 6960 on Tuesday NQ should continue to rally to higher high from buy programs and short-covering before selling comes back in.
-- Opening below 6960 could cause some selling, next support is 6865.
