Pushing against resistance and in extreme overbought territory on the daily chart, on Wednesday NQ opened with a gap-up above prior day high, but, instead of the usual small pullback in the morning followed by a rally, NQ crashed through key support triggering momentum algo sell programs, then closing not far up above day low - setting a tone for more selling on Thursday.
Key inflection price level for NQ on Thursday is 4085.
-- Staying below 4085 is an indication NQ is still in down mode, supports are 4060, 4050, 4020
-- Trading back above 4085 is likely to trigger short-covering, with algo buy programs targeting a break above Wednesday swing high.
