With all the major indices in a downtrend, sell the rally crowd has been winning the day since the FOMC decision over a week ago.
On Tuesday NQ rallied sharply in the morning only to be sold off most of the day with the usual profit-taking rally into the close.
Tuesday swing low 4040 for NQ was at the lower end of a strong support zone. Failure to bounce from 4040 is bearish, and a clear and sustained break below 4040 is likely to attract major selling algorithm and a quick tank down to August low at 3900.
Current stock market decline seems to be following the pattern of the 1929 deflationary collapse. It should continue to follow the same path until the Fed announces some kind of a QE4
