NQ consolidated sideways between 5400 support and 5440 resistance all day on Thursday, setting up a trending move out of the range once consolidation has ended.
Trading range is 5400 - 5440, with 5400 as key support, 5440 as key resistance. A sustained break out of the range is likely to trigger a fast move in the direction of the break.
It is a well-known phenomenon that during distribution large funds tends to manipulate the market upward I order to trigger short-covering and momentum buying, then as the market rallies, they download their large positions.
The sideways consolidation on Thursday following a steep selloff on Wednesday is a setup for another large down day.
-- However, lets not be surprised if the market is engineered higher, NQ breaking above 5400 key resistance and rally up to another higher high before massive selling comes back in.
The US has escalate the war in Syria with massive bombing campaign, and next on their radar screen is attack on North Korea. These wars could be a catalyst for a financial market collapse.
