The equity market tanked hard all day on Tuesday following the announcement of a NO-DEAL on the the debt ceiling negotiations - which implies the United states is likely going into a technical default on its debt if agreement is not reached by October 17, 2013, with the ramifications that is unknown.
Tuesday's selloff must have scared the Fed, with Obama scheduled to announce the appointment of Janet Yellin - who is the ultra money-printer, as the new Fed Chairman, in the hope of avoiding further selloff, and triggering a market rally.
All market indices declined down to support on Tuesday, and with the announcement of the new Fed chairwoman after hours on Tuesday, it is possible that we may get a countertrend rally on Wednesday. If so, it should then trade and stay above key level.
NQ key price level / inflection point for Wednesday is 3160.
-- Above 3160 could trigger a short-covering rally, with resistance at 3180-3190 then 3205.
-- Below 3160 implies NQ is still going down, with the next support at 3140, a very strong support level, and it will take a very bearish market to clearly break below 3140.
