As expected the equity market simply traded sideways ahead of the FOMC announcement on Wednesday, and it should continue to do so until the FOMC announcement in the afternoon.
The FOMC announcement would have to be dovish to keep the stock market elevated. A non-dovish or hawkish statement could start the summer selloff immediately or a bit later as the Fed is likely to try to hold the stock market up as long as they can.
But how long can they keep the stock market up remains to be seen because China is continuing to devalue their currency, the Yuan. A declining Chinese Yuan versus the USD is bearish for the stock market.
On the short term time frame, key balance price level for NQ remains at 4650.
