After days of heavy selling, the Fed buyers were finally able to trigger an up-day on Wednesday. All major indices closed in the green.
There should be a follow-through up-day on Thursday, unless of course the global credit contraction is extremely severe. Failure to again close in the green on Thursday is an indication the global market is in serious trouble, implies the market is in a "crash" mode, and should be sold.
Key price level to watch for on Thursday is 4170 in NQ.
-- More short-covering above 4170, next resistance is 4200 then 4215 which is a strong resistance. breaking 4215 could quickly take NQ up to 4250.
-- Staying below 4170 is an indication that NQ is going back down, first support is 4130. Breaking below 4130 is likely to trigger algo sell programs, targeting a re-test of Wednesday low.
