With the Fed as the only major buyer of the stock market, they were unable to push the market higher on Thursday, but managed to keep the stock market moving sideways, maintaining its bull trend on the daily chart.
On Friday, as long as there is no unexpected major market moving news that can cause a major selloff, the market should continue to go up, with the longer term upside target at 4700 for NQ.
The Fed would love to get the Dow and the S&P 500 to a higher-high above its 2015 swing high, just to trigger buying stampede, both due to panic short-covering and also triggering new euphoric buying binge by those still sitting on the sideline. Whether or not they will succeed in pushing the major indices into higher-high, only time will tell.
On the short term time frame, key inflection price level for NQ on Friday will be 4550.
-- Trading above 4550 is an indication NQ is likely to break out to the upside.
-- Breaking below 4550 implies a move lower, next support is 4525. A sustained break below 4525 could trigger algo sell programs, lower support is at 4500
Gold Inversely Correlated To The USD. With the USD expected to trend down for several years look for gold rally to continue.
