A very bearish day in the equity market on Wednesday with NQ dropping about 500 points from prior day close. The bearish trend should continue, perhaps with a pause when it dropped down to 15,500 strong support zone, or with NO pause. The next target below 15,500 is 14,800.
The FOMC minutes released on Wednesday contained two key information that has not been price in by market participants.. Everyone knows that the Fed is going to end its QE by March or April 2022. But what has not been priced in by the market are:
1. The Fed will starts reducing their balance sheet by April 2022, and
2. The Fed will raise its short term interest rates by April 2022.
If the Fed does not change this plan the stock market, the crypto market and the bond market will continue to crash and crash and crash.
On Thursday look for NQ to either trade sideways or crash again with the next support at 14,700.
