In their attempt to negate the negative effect of collapsing crude oil price on Monday night, the Fed engineered massive buy programs on Monday night that continued into Tuesday morning designed to trigger a massive short-covering rally as soon as the market opened, which it did.
But after the buy programs ended, reality kicked in, as the stock market collapsed under the weight of collapsing crude oil price. NQ managed to rally into the close, closing at key price inflection level for Wednesday.
Key inflection price level for NQ on Wednesday will be 4160, with crude oil price as the main driver of stock market prices.
-- Above 4160 is an indication NQ is likely going up, as long as crude oil price is not in a sell-off mode. Next resistance is4200.
-- Below 4160 is bearish with the next support at 4080. Breaking below 4080 and if accompanied by a sell-off in he crude oil market, NQ could quickly tanked down to 4000.
