Monday night buying programs designed to cause the stock market to open with a gap-up in order to trigger buying did managed to cause a gap-up opening in Tuesday but it failed to trigger any buying interest by investors as NQ slowly decline all day down towards closing the opening gap.
The momentum of the current uptrend on the daily chart has greatly slowed down and the uptrend looks ready for a bigger pullback down. Buy programs continued to struggled, barely able to keep the uptrend going.
On the short term intraday timeframe support for NQ on Wednesday will be 4810.
-- Trading below it could trigger some selling, next support is 4790 then 4771.
-- If NQ can stay above 4810, the next upside target is a break below Tuesday swing high before profit-taking sets in.
Reuters: Bank of Japan's rush into stocks raises fears of market distortions. The BOJ decided on July 29 to expand this stimulus by increasing its annual purchases of ETFs to 6 trillion yen ($60 billion) from 3.3 trillion yen.
