For NQ, Friday was the second large down-days, with the low of the day not too far above its crucial 200 day moving average, a critical price zone for many funds and algos. A clear and sustained break is likely to trigger longer-term algo sell programs that based their trigger level on the daily chart.
A break is likely to cause a large trending down day for NQ. With both the S&P 500 and the Dow broken below their respective 200-dma, the chances NQ should break its 200-dma is very high. If so, supports are 4300 then 4200.
On the smaller time-frame, key price level for NQ on Monday will be 4500 support and 4550 resistance. A clear and sustained break above resistance or below support could trigger a fast move.
-- Trading above 4550 could trigger fast short-covering rally to the next resistance zone 4590-4600
-- trading below 4500 could trigger more also sell programs, likely downside target is below December 14 swing low.
