Another selloff day in the market on Thursday. NQ opened with a huge gap-down of over 100 points. Then after a brief countertrend rally, sold off all day into the close.
The selloff in the market is far from over, but with a potential end of the week profit-taking by the short seller and a very oversold market condition on the daily chart, a one or two day bounce is possible.
However, in order to do that NQ needs to stay above 4330 on Friday then break above 4400 along with rally in the crude oil market. A continual selloffs in the crude oil market will drag the market down.
Trading below 4300 is likely to trigger another round of algo sell programs, with the next downside target remains at 4100.
