Without buyers left to buy the stocks except the Fed buying algos, the big cap stocks are just trading sideways while the smaller cap stocks in Nasdaq simply stairs-step upward in a very narrow range.
The stock market is clearly in a topping pattern, in overbought condition on the daily timeframe, and looks ready to drop down at any time. When it does, and once the major indices break below key support level, the Fed may get overwhelmed by avalanches of selling.
But for now the major indices such as the Dow, the S&P500 and NQ are still trading above their key support level. as such, selling remains under control.
Key short term 5-minute timeframe support for NQ on Wednesday will be 5030.
-- As long as NQ can stay above 5030, it could continue to chop its way to another higher high.
-- A break below 5030 implies a larger pullback, next support is 5000.
