The Fed engineered massive gap-up open designed to trigger massive short-covering rally ahead of their policy decision on Wednesday failed miserable, instead of covering, many used this opportunity to sell their position and shorted the market.
All the major indices sold off hard, closing near the low of the day.
It is difficult to say what the Fed may need to do to trigger the end of the year rally. If their meeting announcement on Wednesday fail to trigger short-covering and end of the year buying, the market may be ready to sell-off hard into the end of the year and to continue into the new year.
With so many investors holding bullish position into the year end, the sell-off may get out of control.
Key price level for NQ gtoing forward is the 50-day moving average, on NQ it is hovering around 11,550, bullish above it, and bearish below it
