Key price level going into Wednesday trading session was the daily chart 50-day moving average as support at 7200 and the 20-day moving average as resistance at 7320.
NQ opened inside the 7200 - 7320 range on Wednesday and stayed inside the range, as expected, trading in a sideways consolidation pattern. Until we get a breakout of the range NQ would continue to trade sideways.
Key price level going into Thursday trading session is again the daily chart 50-day moving average as support at 7200 and the 20-day moving average as resistance at 7320.
With Wednesday as the second consolidation days following two large down days, NQ looks ready to drop down hard on Thursday. However, in order to do that NQ would need to break down below 7200 to trigger the 50-day moving average algorithm sell programs .
On the short term intraday 5-minute timeframe, key inflection price level for Thursday will be the 5-minute 200-period moving average, sitting at 7250 as of Wednesday close.
On Wednesday without any surprise news on the FOMC decision on interest rate at the July meeting, the market did not react at all. The next crucial meeting is not until September when the Fed is widely expected too raise short tem interest rate again.
