NQ continued to sell-off but remained above 4700 support. Whether or not NQ would crash through 4700 support and tank quickly to the next support zone at 4500 only time will tell. But Wednesday was the seventh down days in a row for NQ and a one or two days bounce is in the cards.
However, a bounce is not a guarantee. A strong declining momentum of this current selloff may in fact be able to keep pushing the market lower. With the Fed inability to raise interest rates to keep the international capital flowing into the US market, the market selloff can continue. A Trump election victory is almost certain to crash the stock market and many investors may be exiting the market ahead of the election in anticipation of a Trump victory.
Key support for NQ on Thursday will remains at 4700.
-- If NQ remains above 4700 selling should be muted, NQ either just consolidate sideways or rally, with first resistance at 4755.
-- A clear and sustained break below 4700 is going to unleashed another rounds of selling, next potential support at 4650 but strong support is not until at 4500-4550.
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