The Fed monetary policy choices has gone into a no-win situation. It is a choice between saving the dollar from total collapse or saving the stock market from total collapse, and neither option is good.
With the stock market ready to crash, on Thursday, the Fed decided to let the dollar decline just in order to stabilize the stock market. The market was ready to sell off again at he open but a declining dollar managed to rally the market.
NQ has broken below key moving average support, the 20DMA and the 50-DMA. Unless NQ can rally back above those two moving averages, algo will remains in sell mode. Both S&P500 and the Dow futures remains above breakout support which helps keep selling under control. But the forces of global deflation is beginning to overwhelm central bankers.
Key short term price level for NQ on Friday will be 4800, currently acting as resistance.
-- Trading above 4800 should keep selling under control.
-- Selling could resume if NQ failed to break and stay above 4800. Keep an eye on the US dollar index.
