NQ opened with a large gap-down and then ran down to just below prior swing low before consolidating and traded sideways.
Keep in mind that Friday is usually a bullish day, however, to bet on the bullish side, we want to see price stay above key support level.
Keep in mind that Friday is usually a bullish day, however, to bet on the bullish side, we want to see price stay above key support level.
The sideways action on Thursday following a decline is either a setup for the next down-leg, or a setup for the next rally leg up. But, a bearish first trading day of the year is not good for the general market. With most traders and investors currently wildly bullish about the market, a sustained decline could feed on itself as training stop-loss get overrun -- and it could cause a cascade selling that can get out of control
Key support price level for Friday is 3555.
-- NQ needs to stay above 3555 to stay on the bullish side, resistance at 3575.
-- Bearish below 3555. with the next support at 3537 area.
Gold rose nearly 2 percent on Thursday as many traders sold off their stocks and move their funds out of equity and into precious metals.
Silver rallied about 4 percent for its biggest one-day gain since mid September, while platinum group metals also jumped 2 percent in tandem with gold's rally.
New positions initiated by institutional investors at the start of the new year and some bargain hunting following the metal drop to a six-month low in the previous session triggered bullion demand.
The inverse correlation between gold and equities could strengthen in 2014 after bullion's tumble and the
stock market's strong run last year. As investors take profits from the equity market after its break-neck pace of growth last year, gold should be a prime beneficiary of capital inflow.
