With most traders still not back at the office on Friday anything is possible, but a large sell-off on Wednesday pushed NQ into an oversold condition on the 60-minute chart, setting up a potential oversold bounce. Whether or not that oversold bounce will trigger a resumption of the current daily uptrend, or just a counter-trend a bounce prior to resuming another decline, only time will tell.
Key price level to watch for on Friday is 4255.
-- Above 4255 is an indication that Wednesday's sell-off has ended, look for more rally, next upside resistance is 4275.
-- Below 4255 implies the sell-off is likely to resume.
Although it may be too early to take up major positions in the market for a "crash", the stress in the financial system is currently similar to that prior to 1987 stock market crash and the 2007 market top.
