On Tuesday NQ opened with a gap-up and then pullback down to support before rallying back to break above Monday's swing high. As long a Tuesdays low is not violated NQ should continue to rally to higher high.
Key inflection price level on Wednesday is 3555.
The FOMC will announce their policy statement at the usual time in the afternoon. Look for the market to chop around until then, but expect the market to make a sustained move after the FOMC announcement.
-- Continual rally above 3555, next resistance is 3600 then 3620 and 3670
-- A resumption of a downtrend below 3555, next support is 3500, then 3480 and 3400. Any sell-off that clearly breaks below 3480 could trigger massive selling algorithm.
The Fed is expect to announce another $10B asset purchase reduction on Wednesday, down from the current $55B to $45B per month, and it would be bearish for the market, it could start the usual summer selloff. See the chart below, the market sell-off each time previous QE were terminated.
