On Thursday NQ opened and then tanked all morning breaking through several support levels before stopping just above well defended 4300 support. The Fed buy programs with the help of the end of day profit-taking helped propel NQ back up to 4350 resistance level.
4350 will be key inflection price level for NQ on Friday.
-- If buy programs can pushed NQ back up above 4350 resistance, short-covering should help propel NQ further up to higher resistances, 4370 then 4400.
-- Failure to break and stay above 4350 could attract short-selling, key support is again 4300.
Note that the trend on the daily chart is still down. NQ is currently still trading below its 20-DMA.
Kyle Bass, the hedge-fund manager who’s wagering on a slowdown in China’s economy, said Hong Kong’s property market is in “free fall” and the credit expansion in Southeast Asian emerging markets will unravel.
“Hong Kong’s in a worse position than it was in prior to the ’97 crisis today,” Bass said at the SkyBridge Alternatives Conference in Las Vegas on Wednesday. He said credit in Asian emerging markets has grown “recklessly,” citing Malaysia and Thailand.
