A massive selloff day in the equity market on Thursday following a disappointing decision by the ECB. The market participants has factored in a massive increase in the QE amount but the ECB did not deliver.
Unless the ECB would change soon, the selloff should continue, and can get out of hand very quickly as most traders and investors are long and highly leveraged.
Key inflection price level for Friday will be 4630.
-- Trading above 4630 could trigger short-covering, with resistances coming in at 4660 then 4680
-- Trading below 4630 is bearish, but only a clear and sustained break below 4580 could trigger another round of liquidation decline. Staying above 4580 implies a sideways choppy trading session.
