The equity market continued to decline on Friday with some profit-taking rally during midday but then the bear market resumed in the afternoon.
Although the market was already in oversold territory on Friday, the intensity of the current selling pressure, likely due to margin selling, is still in acceleration mode as of Friday, so whether or not we would get a consolidation day on Monday it is difficult to say, and it will depends on several factors, first is the price of crude oil and then second where NQ trades in relation its key price level.
For Monday key price level for NQ is 4300.
-- NQ needs to break back above 4300 and stay above 4300, in conjunction with rally in the price of crude oil, to relieve selling pressure. If so, resistances are 4330 and then 4350.
-- NQ will remains under heavy selling pressure below 4300. A continual push lower could accelerate the margin call selling and can get the market into disorderly decline. A bearish crude oil price will drag the equity market downward. The next potential support level for NQ is still at 4100.
