A huge opening gap-up on Thursday following one of the Fed governors comment that there will be no interest rate increase anytime soon triggered massive short-covering rally right at the open that lasted all day into the close. The rally was definitely helped by consolidating crude oil prices.
For Friday, as long as crude oil prices continue to consolidate, the stock market should either continue to rally with the help of the Fed buy programs or consolidates sideways, and as long as any decline does not violate key support level the uptrend should resume.
Key support level for NQ on Friday will be 4200.
-- As long as NQ can stay above 4200 the uptrend should continue. Next resistance is 4280.
-- Breaking below 4200 could trigger algo sell programs that could lead to liquidation decline, especially if accompanied by selloff in the crude oil market.
