On Wednesday the stock market consolidated Tuesday major selling activities, setting up another massive selling day.
By trying to save the dollar from collapsing the Fed is sacrificing the equity market. Strong dollar is very bearish for the global stock markets simply because there is so much debt denominated in the US dollar. The more the US dollar rally the worse the global economic conditions become.
The current market configuration is similar to the pre-1987 stock market crash. Unless the Fed change their policy, selling activities may get so intense that it would overwhelm the Fed buy programs and crash the stock market.
Key price level for NQ on Thursday is again 4800.
-- A sustained break below 4800 could quickly tank NQ down to 4700, but the final target of any down move below 4800 is 4450 - 4500, with 4700 price level that may cause a temporarily bounce.
-- NQ should remain either in a consolidation mode or rally if it remains above 4800.
