Massive buy programs triggered soon after the open and continued all day long until the close caused a large up day for NQ on Thursday.
With such a large up day on Thursday, it is likely that the market would need to consolidate and trade sideways on Friday before rallying back up again, unless of course the Fed would trigger another round of massive buy programs. Ahead of the FOMC meeting next week, the Fed will want to create an illusion that the economy is doing well, but it is not.
The market is likely to make a higher high above recent high with massive loss in momentum, creating a very bearish divergence, setting up a fast and violent drop sometimes soon. However, if the Fed can help it, they are going to try to hold the stock market up to help Hilary Clinton during the November Presidential election.
For Friday key support for NQ will be 4770.
-- Staying above 4770 would ensure that sellers are kept inactive. If so, NQ either trade sideways or trend up.
-- If for whatever reason, NQ should break below 4770, selling could come back in, but strong support remains at 4700.
Total open interest on the VIX futures recently just reached an all-time high.
