Monday nigh buying binge by the Fed managed to cause a gap-up opening for the major equity indices, including NQ, on Tuesday. As the oil price rally started to fade soon after the open it dragged down the equity market. The market sold off hard most of the day but buy programs managed to push the market up in late afternoon trading.
With President Obama addressing the country for his state of the union address on Tuesday night it is very likely buy programs is going into overdrive on Tuesday nigh and into Wednesday. If so, look for another up day for the market on Wednesday. However, a selloff day on Wednesday is an indication the market is in crash mode. If so, the downside target remains at 4100.
Key inflection price level for NQ on Wednesday will be 4300.
-- NQ will come under heavy selling pressure below 4300, but it needs to break below 4260 Tuesday swing low to trigger massive algo selling programs.
-- Selling pressure will be muted above 4300.
Key trend drive remains the price of crude oil.
