Following a trending up day on Wednesday, NQ traded sideways in a choppy narrow range pattern on Thursday.
The major equity indices has not been able to mount a two-day back to back rally since the beginning of July, lately has struggled to rally now that they are in deep overbought territory on the daily chart.
Following Thursday consolidation type of day, it should be followed by a rally up day on Friday. However, as Friday tends to be a choppy sideways type of day, it should not surprise us if NQ simply traded sideways.
On a short-term 5-minute timeframe, key balance price level for NQ on Friday will be 4540.
-- Trading below 4540 is an indication NQ is still in a pullback down mode, with the next support at 4520. Below that a strong support is at 4500.
-- Trading back above 4540 is bullish, NQ may need to rally above Thursday swing high to take out the stop-losses before it can pullback down on profit-taking.
Nikkei reports Japan stimulus package (helicopter money) could be as large as 30 trillion yen
