Another sideways price action in the market on Tuesday as the battle between central banks and forces of deflation continues. Unless central banks are willing to dramatically increase the amount of liquidity inject into the global financial system the forces of deflation is going to win and the market should go into a sustained decline.
Key price levels to watch for on Wednesday is again 4435 resistance and 4355 support.
-- Remaining inside the range will keep NQ in a narrow range choppy pattern.
-- Breaking out of the range, either on a real break or a false-break is likely to cause a fast move.
The chart below is showing that since 2015 the stock market has not been tracking the size of central banks balance sheet, an indication that CB liquidity injection has become very ineffective in inflating the stock market.
