The stock market is now in bearish mode. If the FOMC confirms their planned reduction in QE on Wednesday the current downtrend is going to continue.
However, if the Fed changes their plan, ad not taper, we could see the shorts covers. If so, we could see a short-covering rally. Key level to watch for is the 20 and 50 day moving average on the daily chart. Breaking back above those moving averages confirms a resumption of the bull market.
Failure to break back above the 20-ma on the daily chart is an indication the downtrend is going to continue down. NQ downside target on the daily chart is its 200-dma.
On the intraday 5-minute chart, key inflection price level for NQ on Wednesday will be at 15,000, bullish above, bearish below it.
