NQ opened and then immediately rallied in the morning on Thursday, but is inability to clearly break and stayed above 4430 resistance attracted short-sellers that tanked NQ hard in the afternoon. Only a large end of day buy program triggered after the close of regular trading hours managed to pushed NQ back up above 4373 Wednesday's low after breaking below it.
NQ has broken below its 20-DMA five days ago, and had just broken below its 50-DMA on Thursday, setting up severe selling pressure unless it could break back above its 50-DMA and its 20-DMA.
Key support for NQ on Friday will be 4373.
-- Staying above 4373 should keep short-seller at bay but it has to break above 4400 and stay above 4400 to turn bullish, with strong resistance at 4430 - 4440 area.
-- A sustained break below 4373 is likely to trigger massive selling algo, next support will be 4300.
The U.S. Economy Officially Joins The Global Economic Slowdown – 1st Quarter GDP Comes In At 0.5%
The U.S. economy is slowing down. On Thursday, we learned that U.S. GDP grew at just a 0.5 percent annual rate during the first quarter of 2016. This was lower than analysts were anticipating, and it marks the third time in a row that the GDP number has declined compared to the previous quarter. In other words, GDP growth has been declining for close to a year now.
