On Tuesday, with global stock market selling off hard overnight and the US stock market about to open with a huge gap-down and ready to crash, the Fed was ready to intervene with monster buy programs to push the market up.The intervention is not without cost, as the gold market, sensing that the Fed is going to pump in massive liquidity, gold rallied big, clearly breaking above 1200 key resistance price level, and may be ready to trigger more short-covering.
With intense selling pressure it took the Fed about 90 minutes after the opening bell to stabilize the market and rocketed the indices up all day into the close.
Whether or not the attempted global market crash has been prevented, at least for now, only time will tell, but the global stock market and bond market crash is coming. This time around, the governments are all too broke to bail the market out.
Key inflection price level for NQ on Wednesday is going to be 4300 again.
-- More rally above 4300 with the next resistance at 4325
-- Bearish below 4300 but NQ needs to break below 4280 to trigger another round of algo sell programs. Lower supports are 4260, 4242, 4220, 4200.
