On Wednesday, with a bearish mood going into the open, and not willing to let the rally failed heading into next week Thanksgiving holiday, the Fed was ready with their buy programs, in the amount whatever it takes, to push the market up.
NQ opened just above its prior day low, and then after dropping down to support just below prior day low, the Fed buy programs kicked in, designed to panic the short-sellers, which it did, rocketing NQ up through several resistances before stopping just shy of making a new higher high.
It then traded sideways the rest of the day, setting up a likely break above the high on Friday. Whether or not a break above the high would cause a trending up day on Friday only time will tell, but Friday tends to be choppy sideways type of day because traders, as always, clear their trading books going into the weekend.
Key price level for NQ on Friday will be the recent high 4248 area.
-- IF NQ can break and stay above 4248 area on Friday it could cause a flurry of short-covering as stoploss gets hit. Whether or not it could attract real buying activities after the flurries is over, it is difficult to predict, only time will tell, but there is really not many buyers at this price level except the Fed.
-- On the other hand, breaking below 4235 could trigger some allgo sell programs that could take NQ price down to the next support level 4225. It would need to clearly break below 4225 to trigger major algo sell programs that has the potential to take NQ down to 4195-4200 support area.
