Another sideways consolidation type of day for NQ on Wednesday. Attempted rally in both the stock market and the crude oil market failed, with crude oil dropping and closing below prior swing low, setting up a potential liquidation drop that could easily drag the stock market down with it, and over run the Fed buying programs.
With the Fed Chairwoman testifying to congress and senate for the second day on Thursday, look for the Fed to keep trying to support the stock market. Whether or not they will be successful would depends on the price of crude oil.
Key resistance for NQ on Thursday will remains 4000, key support is 3900. The key driver on Thursday will remains the price of crude oil.
