On Tuesday NQ opened with a large gap-up that successfully triggered a short-covering rally lasting all day into the close, with small lunch pullback.
On Wednesday, ahead of the FOMC policy announcement in the afternoon anything can happen, but the normal pattern ahead of the FOMC announcement is usually choppy with a slight bullish bias.
However, Wednesday FOMC announcement is not a normal one, the big decision is whether to end QE or not to end QE. But whatever their decision may be, the Fed would be ready to support the market with buy programs.
Key inflection price level on Wednesday will be 4080
-- NQ should continue to rally above 4080, next resistance to break is 4115 swing high.
-- Trading below 4080 is an indication NQ is going into another pullback mode, key support is 4045. A sustained break below 4040 could trigger algo sell programs, next support is 4025 and 4000.
