Will Friday be a "Black Friday" when the stock market "Crash"?, or will it be a sideways consolidation day?, or a short-covering rally day? For the answer, we will just have to wait and see, it will depends very much on what happen in the crude oil market.
A sell-off in the crude oil market has a severe contractionary effect on the overall credit, thus has the potential to drag the stock market down with it. All major indices are at key support zone, a clear break below support could trigger algorithm sell programs designed to run-over trailing stop-losses, with the decline that can get out of control, essentially a "Crash".
On Thursday, NQ traded down to triple bottom support (4080) on the daily chart, support held. On Friday, a clear break below 4080 could trigger a major selloff, without a break we could see either a sideways consolidation or a short-covering rally day.
Resistances above 4080 are 4120 and then 4160
