On Wednesday NQ opened above 3545 key support but was unable to stay above, then quickly break down below support, as expected, triggered massive algorithm sell programs, tanking NQ down to the next support. ES also broke below key support.
But large buyers, most likely the Fed, triggered massive buy programs to help push the market back up, NQ closed just below prior support (3545) now resistance.
For Thursday NQ 3545 will remain as key price level to watch for. and 1868 for ES
-- Failure to clearly break back above 3545 could attract new sellers that could push the amrket back down to support 3520 then 3500. Breaking below 3500 could trigger another round of algorithm sell programs, next support is 3480. A clear break below 3480 could cause margin call liquidation selloff, next support is 3400.
-- If NQ can break-back above 3545 and then stayed above 3545, we could see another round of short-covering rally, next resistance is 3575 the 3610.
-- ES will remain in a bullish mode above 1868, but ES will be in a bearish mode below 1868
