Nasdaq failed to break above key 2570 level on Thursday, and as expected liquidated into the close, resulting in a wide-range down-trending day. I am looking for a similar type of day for Friday, unless it can rally and stay above key level.
For Friday, key level is 2525.
- Pullback that fail to break and stay above 2525 implies the fast down-trending mode is still in progress and implies another liquidation wide-range day, with next major support at 2420 area. Fibonacci projection targets 1.618 is 2478 and 2.00 is 2414. Fibonacci levels are levels that we would need to watch closely as they can cause a bounce or reversal.
- Pullback that breaks and stay above 2525 implies a pause in the fast down-trending move, implies it is going into consolidation, with upside target 2540-2545. A clear break above 2545 could trigger a short-covering rally.
