The market consolidated on Tuesday, with ES and NQ both made a higher high above Friday's swing high, but without much shorts left to cover the Fed buy programs was not able to gain much momentum to the upside.
With the FOMC minutes to be released at 2 PM eastern on Wednesday and the upcoming Janet Yellen testimony before congress, the Fed buy programs should continue. How successful will they be will depends on where the various indices trades in relation to their key technical price level.
Key inflection price level for NQ on Wednesday is 3680.
-- Above 3680 is an indication NQ is going to make another higher high, NQ upside target is still at 3700 - 3725.
-- Below 3680 implies NQ is going into a pullback mode, with first support at 3665. A clear and sustained break below 3665 isbearish, next strong supprot is 3630
Key price inflection level for ES is 1840.
-- Bullish above, targeting higher high above Tuesday's swing high. ES upside target is 1870 - 1890.
-- A lear and sustained break below implies ES is going into a pullback mode, first support is 1832. Strong support is at 1822.
