The Fed continued to push the stock market higher on Tuesday, ahead of their policy announcement on Wednesday
There is no doubt they will continue to support the market on Wednesday, but with the stock market in overbought condition on the daily timeframe we could continue to see sharp sell-off each time it makes a new higher high.
We are likely to continue to see the same pattern on Wednesday with stock market manipulators pushing the futures market up during low volume overnight trading and into the morning trading but profit-taking and selling push the stock market down in the afternoon.
On the daily chart, NQ is in its final stage of wave 5 rally from the December 24 low, and once it ends, we should see a return to sharp selling.
On the short-term intraday timeframe, key line-in-the-sand for NQ on Wednesday will be at 7360
-- NQ will continue to be bullish above 7365 with resistance again at 7400, then 7480.
-- NQ could selloff below 7360 with first support at 7320, then 7300
