An attempted pullback down day on Tuesday was aggressive bought late afternoon, buy programs continued into the close.
With the Fed desperately trying to gain back lost credibility by raising interest rate at the June meeting, their plan is to keep pushing the stock market up and up into the June meeting in order to create an illusion that the economy is doing well, but the economy is not. The stock market is set to crash, so even with the Fed continuous buy programs the stock market may still crash, it is just a matter of when.
However, as traders, we must continue to trade the technical as no one knows when the Fed finally looses the battle with the market forces of deflation. The trend on the daily chart is currently up but now in overbought territory, and could experience sharp pullback at any time.
Key support price level for NQ on Wednesday will be 4510.
-- Bullish above 4510, an indication the current uptrend is still in progress without a larger pullback down move.
-- Trading below 4510 implies likely pullback is in progress, but always watch out for the end of day buy programs.
