For the third consecutive session, stocks are on the march north, furthering the recoveries of the DJIA, S&P 500, and NASDAQ. Tomorrow’s FOMC Minutes release may challenge the current rally. Aside from the looming FOMC, the bulls appear to be back in control of U.S. equities for the time being.

Over the past 50 days, the hardest hit U.S. equities index has been the NASDAQ. Values have plunged since the highs of early December, putting in a hard test beneath 6000. However, traders are piling back into the NASDAQ, putting together a 750 point gain since the day after Christmas.

March E-mini NASDAQ: Technical Outlook

Perhaps the biggest financial story of the early year has been the plunge of Apple stock. Last Wednesday marked an epic drop in stock price, from $157 to $143. Since that point, bargain hunters have stepped in, sending share prices back above $150. March E-mini NASDAQ futures have benefitted, breaking above two daily topside resistance levels.

Here are the key levels to watch for today’s session:

• Resistance(1): 78% Current Wave Retracement, 6660.25
• Support(1): Daily SMA, 6501.50
• Support(2): Bollinger MP, 6466.50

Bottom Line: It has been another strong Wall Street open for the NASDAQ. In the event it continues, I will be looking to short this market from beneath the 78% Current Wave Retracement from 6659.25. With an initial stop at 6667.75, this trade produces 25 ticks on a sub-1:1 risk vs reward management plan.

Remember that tomorrow marks what will be a blockbuster FOMC Minutes release. If we begin to see chaotic price action toward the end of today’s session, it may be best to limit risk and head for the sidelines.