On Wednesday, the market should finally get clarity on issue that traders and investors has been waiting for for since May 2013: the how and when the Federal Reserve is going to adjust its monetary policy, to taper or not to taper.
Whether or not they will taper, only time will tell, and the time is tomorrow, Wednesday afternoon at 2:00 PM eastern time. The reaction from the announcement could cause a trending move, up or down, until the next issue comes around -- the US debt ceiling due in October, and then of course the selection of the next Fed Chairman/woman.
With Larry Summers, who positioned himself as less money-printing crazy that Ben Bernanke, pulling out of the race for the next Fed Chairman, the hope is that Janet Yellin, the ultra money printer, should keep the bull market in stocks alive. We shall see what will happen going forward, but the debt ceiling debate plus the race for the next Fed Chairperson should keep market volatility high.
For Wednesday, first support on the daily chart for NQ is 3140 area.
-- Above 3140 is an indication NQ is going to continue to go higher.
-- Below 3140 implies it is going down to 3020 - 3040 strong support zone.
NQ Daily Chart
ES Daily Chart; Key support is 1660-1680
