A consolidation day following Tuesday's massive rally day. Cisco's sell-off after hours after announcing a layof of over 4,000 worker, may cause a bearish day on Thursday. If so, look for more selling or a gap-down open on Thursday, and unless the Fed is ready with large buy programs, the market may sell-off.
Key Level or Thursday is 3130.
-- Continual decline or consolidation below 3130. Cisco's news may cause the market to sell-off hard on Thursday unless the fed comes to the rescue in a big way
-- Above 3130 implies consolidation may have ended and the next rally is likely, targeting a break above Tuesday's swing high.
Fed buying Vs the market
From zerohedge: We know that between January 2009 and April 2013, on days in which the Fed POMO was more than $5 billion, the stock market rose a total of 570 points, on days in which the POMO was less than $5 billion, the cumulative stock market gain was "only" 141 points, and when there was no POMO, the S&P gained... -51 points.
