Both the Japanese Yen and the US dollar consolidated and traded sideways on Wednesday thus providing some relief to the selling pressure in the equity market. Rally in the crude oil market also helped reduced some selling pressure in the equity market.
Going forward, the US$/Yen cross rate along with the price of crude oil should continue to drive the price of stocks. A continual decline in the crude oil market and a further sharp rally in the yen could easily crash the stock market that is already in extreme bubble territory when compared to the current economic fundamental conditions.
On the short term timeframe key resistance for NQ on Thursday will be 4730, support is 4700.
-- But more importantly, the dollar-yen cross rate and the price of crude oil will be key driver of trend direction on Thursday.
