A sideways consolidation day for NQ on Tuesday, stuck between 3900 support and 4000 resistance. It is likely to trade out of the 3900 - 4000 range on Wednesday as the Fed buyers and the market forces of deflation continues to battle it out.
A bearish crude oil is likely to drag down the equity market and overwhelm the Fed buyers. A sustained drop below 3900 is likely to trigger another round of liquidation sell programs, with the next key support is not until 3700.
However, with the Fed Chairwoman Janet Yellen testifying before Congress and the Senate for the next two days, look for the Fed to trigger non-stop buy programs. How successful will they be would very much depends on the price of crude oil.
Here is the S&P monthly chart
