On Tuesday, after opening and then rallying up to 3500 resistance NQ quickly reversed back down breaking all support levels on its way down to 3400 double-bottom support with February swing low. ES dropped down to Monday's swing low before bouncing and rally back up to resistance.
With the Fed Chairperson scheduled to speak tomorrow, Wednesday, it was very likely the Fed who engineered the massive buy programs triggering massive rally, to ensure there is not much technical damage to the market indices.
With the Fed buy programs expected to continue on Wednesday and Thursday ahead of the long Easter weekend, we could see massive 2 days rally, on Wednesday and Thursday.
Key resistance for NQ on Wednesday is 3500, and for ES is 1840 for ES
-- Trading above key resistance should trigger a short-covering rally, with NQ resistances at 3540 and 3600, for ES the next res is 1860 and 1878.
-- Below 3500 for NQ and below 1840 for ES is an indication the market is going into a down-mode, a consolidation down or a resumption of the downtrend.
-- As long as key support is not clearly violated, 3450 for NQ and 1824 for ES, the market should continue to go up. Breaking below key support will attract momentum algos, targeting a break below Tuesday's low.
GOLD - With the proxy war between the United States and Russia over Ukraine intensifying, and in order to protect the US dollar from collapsing, the Fed engineered a large price decline during overnight thin trading, with gold opening with a gap-down of over $30 per ounce.
