On Wednesday the equity market traded sideways ahead of the FOMC announcement, and also after the announcement as the Fed was able to hold the market up until the end of the day as the market sold off into the closing bell.
With no change in the Fed monetary policy (No new QE, no rate increase/decrease) the market can now go to where it should go to, which is down.
However, the Fed may try to hold the market up in order to create an illusion that all is well. But the forces of deflation may be to much for the Fed to bear, and sooner or later the market should start to sell off in earnest, slowly at first and then accelerate its decline in late summer and into the fall.
Key support for NQ on Thursday will be 4400.
-- A sustained break below 4400 is going to attract heavy selling pressure, with the next support at 4300.
-- If NQ can stay above 4400 then selling pressure should be under control. First resistance is 4430
