The equity market opened and tried to sell off right away on Tuesday, with NQ breaking below it 20-DMA on the daily chart, and that was the last thing the Fed would like to see. As expected, massive buy programs was then triggered to push the market up all day long, which continued into the close.
The Fed has secret emergency meeting every day this week, the topic of discussion that no one knows as the meetings are secret. Likely discussion is likely some derivative meltdown somewhere, possible concerning the Deutsche Bank situation, but that is just a guess.
In any case, they got NQ to close above its 20-DMA which should keep major sell algos at bay, making it much easier to manipulate prices back up again on Wednesday.
Key inflection price level for NQ on Wednesday will be at 4475 again.
-- As long as NQ can stay above 4475, short-sellers will be kept at bay, but NQ would need to clearly break above 4500 to trigger some short-covering.
-- NQ is bearish below 4475, first support is 4455.
