On Thursday NQ opened above 4200 resistance triggering some short-covering rally that lasted several for hours. However, without sufficient new buyers to keep the uptrend going, profit-taking quickly set in tanking NQ back down to retest 4200 now support before bouncing back up to retrace .786 of the drop, setting up a C-wave decline back down to below early morning low, ABC 1:1 down move.
At the completion of the C-wave down, NQ then spent the rest of the afternoon rallying in a choppy manner back up to retraced .618 of the entire ABC decline, setting up either a continual rally on Friday, to higher high above Thursday swing high, or dropping back down for a larger C-wave.
Where it trades on Friday morning would determine which direction NQ is going to trade, i.e. up to higher high above Thursday's swing high or down to lower-low below Thursday swing low.
Key inflection price level for NQ on Friday is 4210
-- Above 4210 is an indication that NQ is likely to trend back up again, next upside target is a break above Thursday's swing high.
-- Trading below 4210 implies NQ is either re-testing Thirsday swing low, or going down to a lower low below Thursday's swing low for a larger C-wave down to 4175-80 support area.
