A bearish day in the equity market on Wednesday after Apple earning report announcement on Tuesday. The forces of global deflation is starting to overwhelm central banks buying programs. Unless central banks are willing to create more currency than the forces of deflation destroys the beginning of a major stock and bond market collapse may not be very far away.
Bearish momentum divergence on the daily chart continues to get more intense, key support level for NQ remains at 4800. A clear and sustained break below 4800 is likely to trigger massive selling algorithms that is likely to overwhelm the Fed.
On the short term intraday timeframe, key price level for NQ on Thursday will be 4860.
-- Trading above 4860 should keep sellers at bay, with the next resistance at 4880.
-- NQ will be under selling pressure below 4860 with the next support at 4840. If 4840 does not hold on Thursday it is likely to trigger algo sell programs that can quickly tank NQ down to key support at 4800.
Another clear sign of deflation, woe in the oilfield: In total, 213 North American oil and gas companies have now filed for bankruptcy since the start of 2015, listing more than $85 billion in debt.
