Nasdaq soars after Fed's action but fails to hold gains


The Fed has just announced an unlimited quantitative easing program, + the central bank will now be able to buy corporate, muni, and agency debt (for the first time).

The Nasdaq 100 index soared circa 8% after this announcement but then dropped quickly, having erased nearly 100% of the initial move.

Shortly after the US opening bell, the index was seen flattish (well above the intraday lows reached during the Asian session) and was trading at around 6,950 USD.

It looks like the 6,800 - 6,900 USD might be the critical support for the near future as the price has stopped here a couple of times already. If the price manages to remain above this level, we could see a short-term bounce, but the overall trend still seems very bearish.

 The short-term resistance could be at today's highs of 7,350 USD and afterward at around the bearish trend line, currently near 7,500 USD.

Alternatively, if today's lows are taken out, we could see a further decline to 6,500 USD, or possibly toward the psychological level of 6,000 USD.

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