Year end pension funds rebalancing activities continues to weigh heavily on the stock market on Wednesday. The activities may even intensifies on Thursday and Friday.
The Fed desperately needs to see the stock market close the year at the high, so they may engineer massive buying activities to counter the year end selling by pension funds. Whether or not they would succeed only time will tell.
On Wednesday NQ dropped down below key support which then triggered an avalanche of sell programs.
Key support for NQ on Thursday will be 4920.
-- As long as NQ can stay above 4920, selling should be under control. If so, NQ could either trade sideways or rally.
-- A break below 4920 could trigger another round of selling, and the next support is 4900, and 4900 needs to hold as a break could trigger an avalanche of selling.
