NQ Daily Trend = UP, overbought
NQ 60-minute Trend = UP
NQ 5-minute Trend = UP
NQ opened near Friday's close but investors started selling right away downloading their long position ahead of the Fed policy announcement on Wednesday. NQ tanked hard, breaking below strong support down to lower support before they managed to rescue it. NQ then close above key inflection p[rice level, 7995-8000, setting up rally if it can stay above 7995 at the open on Tuesday
Longer term, regardless of what the Fed would do on Wednesday, going forward, the stock market is going to commence its long awaited bear market decline. The Fed has held the stock market up by continuing to keep interest rates so low, but they may no longer be able to keep the stock market up as the world economic contractions starts to severely affect the US.
The Fed cutting interest rates will shift international capital flow away from the US, thus will tank the US economy, the USD, the US real estate market and the US treasury and corporate bond market. It is difficult to predict whether the bear market decline will starts immediately after the FOMC announcement on Wednesday, or whether there will be several weeks delay, rally first to clean all the shorts, then starts the bear market decline. We will just have to watch the technical to tell us when to enter bearish positions.
Intraday support/resistance level for NQ on Tuesday will be 7995-8000.
-- If NQ should open and trade above 8000 on Tuesday morning we could see sharp rally as he Fed would continue to aggressively buy the market. Thus, as long as selling does not get
