The equity market was closed for the New Year on Wednesday but was trading sideways on Tuesday, with a close above key intraday inflection price level, which is at 8745.
As long as NQ opens above 8745 we should see a rally at least during the morning session, with or without a small pullback.
Opening below 8745 is bearish, and could cause a selloff. With many investors now in huge profitable position, and may be ready to take profit, we could start to see selling coming into the market unless they could continue to push the stock market higher.
The Fed is now injecting $60 billion per month in QE (QE4) and huge liquidity inject through overnight repo to keep the market going higher.
