With the mid-term election only a few weeks away and the fact that President Trump could not afford to see the Republican lose control of the house and or the senate, he is going to do whatever it takes to keep the stock market up.
Thus on Tuesday, after losing the 7100 price level key support when the NQ opened with a huge gap-down and ready to crash through the October low the Fed-PPT has to intervene aggressively, as we see how NQ rally over 200 points from the day low, and rallied the Dow and S&P 500 stocks as well.
It is a battle between the global forces of deflation versus the Trump buy programs. Trump promised to cut middle income tax rate by 10% did not help the market. Deflation will win, but in the short run there is always a chance Trump buy programs may win the battle.
For NQ on Wednesday, key price level to watch for will be 7200-7210 price zone.
-- If they are able to push NQ up above 7210 it could trigger some short covering that can cause a sharp rally. The next strong resistance is at 7350.
-- Failure to break-back above 7200-7210 resistance area could attract another round of selling. If so, key support is again the October low.
