Wednesday was the fourth consecutive day of rally where NQ closed near the day high, clearly manipulated by the Fed and the PPT in order to run over stop losses of those still holding short positions.
This rally is unsustainable and the drop could be fast and quick as most shorts may have covered. NQ is now in overbought conditions on the 5-min chart, the 60-min chart and the daily chart..
Without further aggressive buying by the Fed and the PPT, NQ is going to fall sharply down when it breaks key support, the first key support is the 200-ma on the 5-min chart.
But for now, going into Thursday trading session, key inflection price level is 7300.
-- If the overnight buy programs can again cause the market to gap-up above Wednesday swing high we could see another rally day. However, because NQ is now in overbought conditions on all major timeframes, longs are starting to be more risky until NQ can pullback down to the 200-ma on the 5-min chart.
-- NQ is bearish below 7300, with first support at 200-ma on the 5-min chart..
