Following two consecutive large up days NQ consolidated sideways on Wednesdays, still far below resistance at 16,150, even with a huge gap-up open and the subsequent short-covering activities that followed.
16,150-16,200 is a very formidable resistance zone for NQ, and if selling started below it reaches resistance its an indication the rally is weak and that heavy selling will hit the market if NQ is not able to break above 16,200.
NQ consolidated just slightly above and slightly below 15,900, which would bekey inflection price level on Thursday, bullish bias above it and bearish bias below it.
Inflation number for December 2021 released on Wednesday was hot at 7% which may force the Fed to start tapering which they have been talking about for months but has not started to do, with current M2 money supply still growing at 26% per year which is consistent with a producing 7% - 9% inflation rate
If the Fed does not start tapering soon, and with money supply still increasing at 26% per annum we would continue to see high inflation, and likely high stock prices.
