Overnight buy programs designed to cause a big gap-up open which then should trigger a short-covering rally failed to attract any new buyers as seller came in after the morning rally faded.
With the Dow and the S&P trading below their respective 50-day moving average, any attempted rally should be short-live as long as S&P 500 and the Dow remains below their 50-day moving average.
At the end of Wednesday trading NQ dropped back below 5400 at the close, setting up for a bearish day on Thursday unless NQ can trade back above 5400 on Thursday.
Key price level for NQ on Thursday will again be 5400.
-- First support below 5400 is 5365. A break below 5365 could trigger another round of liquidation selling activities, lower supports are 5315 then 5300.
-- Trading back above 5400 should keep seller at bay until NQ has rallied up to resistance, 5440
