Now that the Fed meeting is out of the way the market can now trend for a while. It seems that because the market was primed for a very hawkish Fed, and when the Fed announcement was not very hawkish the shorts started to cover, rocketing the market into key resistance, 13,500.
It seems likely the market is going to continue to rally into the weekend due to short-covering with so many shorts trapped and has to cover if the market continue to go higher.. However, the the short-covering is completed we could see the resumption of the bear market.
Thus, key price level for NQ on Thursday will be at 13,500 resistance, which will serve as key line-in-the-sand for NQ on Thursday.
If NQ can stay above 13,500 after the open on Thursday we could easily see short-covering rally that can rocket NQ up to the next resistance at 13,800 area.
If, for whatever reason, NQ should sell-off on Thursday, supports are between 13,200-13,250
The Fed may walk back their Wednesday comment, if so, sell-off may resume right away.
