The stock market traded sideways on Monday and Tuesday as both the Dow and the S&P 500 stock indices are stuck between their 50-days moving average now acting as key resistance and their 200-day moving average now acting as key support.
The 50-dma and 200-dma continues to converge, indicating a trending breakout is imminent, the direction is not certain, but with deflationary pressure accelerating and central banks forced to tightened to avoid their own demise the breakout should be to the downside unless central bankers backs out of their tightening threats.
With Apple shares as the main target of current buy programs NQ is now above its 50-dma on the daily chart. Unless the Dow and the S&P 500 can break above their respective 50-dma, NQ breakout may be short-lived.
Short term key price level for NQ on Wednesday is 6800, bullish above, bearish below
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