Central planners managed to push NQ up above prior swing high and prior 50-day moving average on Tuesday, but it did not trigger much buying interest or short-covering. NQ was quickly sold with a close in the middle of the day trading range.
Central planners is certain to trigger more buying programs ahead of their policy decision announcement on Wednesday afternoon. With NQ closing above key 50-day moving average on the daily chart it could trigger some algos to exit their short and reverse long. Whether or not short-covering activities plus the Fed buy programs is enough to rocket the market higher on Tuesday there is no way to know.
Key price level to watch for on NQ on Wednesday will prior high (resistance) now turned support 7600.
-- As long as NQ remains above 7600 we could see a rally day or just another sideways consolidation day just like Tuesday's pattern..
-- A break-back below 7600 is bearish, however, the Fed will intervene to support the market for President Trump.
