On Thursday NQ opened and immediately started selling off, dropping down below 4300 key support but was met with relentless buying algos that managed to push NQ back up to the opening price level by the close.
With NQ still in a downtrend mode on the daily chart, still trading below its 20-DMA and 50-DMA, look for rallies to get sold until NQ can get back above 4400 price level. So until then, any longs should be exited at the end of the day.
For Friday 4300 will remain a key support price level. Trading above 4300 implies sideways price action. However we should not be surprised to see buy programs designed to push the market up, fighting global deflationary forces.
Below is a chart showing debt default rate among energy companies going parabolic, causing massive deflationary forces.
