A bullish day for the equity market on Monday. With NQ trading above 7660 key support at the open, the bias for the day was to the upside, and it rallied with no reversal all day.
With the fund end of quarter rebalancing still in play on Tuesday we could see another bullish or sideways day on Tuesday, unless selling comes in early.
Bothe the Dow and the S&P 500 are still below its respective 20-ma on the daily chart, and still below key Fibonacci numbers. Only the NQ has broken above the 20-ma. Thus unless both the Dow and the S&P 500 can break above their key 20-dma resistance, any upside move will be limited.
As such key inflection price zone for NQ on Monday will be at 7830
-- As long as NQ remains above 7830, the bias is up.
-- Trading below 7830 is bearish but there are several supports that could stall any decline. They are 7780, 7720, and 7560.
NQ would need to break below 7400 to get major liquidation selling to starts again.
