For the second time in two weeks NQ sold off very hard after making a higher high. This is clearly a distribution pattern activities with insiders pushing the market to another higher high in order to suck in the suckers for them to download their large positions.
Distribution activities normally takes six month to complete before selling commences in earnest, so there should continue to be more of such activities going forwards, with insiders pushing the market to higher high then selling their position aggressively.
Key support for NQ on Thursday will be 5400, which is currently the 20-MA on the daily chart.
-- As long as 5400 support is not violated, NQ should bounce back up, first resistance is 5430 then 5440
-- Breaking below 5400 implies a sharp drop down to 5300-5320 support zone.
