A sideways narrow-range trading action in the market on Monday, with NQ closing at the day high. With the FOMC two days meeting starting on Tuesday look for buy programs to get really active in their attempt to push the market up, fighting against deflationary forces.
Recently, earning reports has been mostly below expectation with gloomy future earning guidance. Against that backdrop it would be difficult for the FOMC to find reasons to justify interest rate increase on Wednesday. If so, look for the Fed to engineered massive buy programs to make the market looks bullish.
Inflection price level for NQ on Tuesday will be 4470.
-- Bullish above 4470 with the next resistance at 4500.
-- Bearish below 4470, but buy programs is likely to keep the market from selling off, unless NQ can break below 4430, which is likely to trigger algo sell programs.
