NQ opened with a huge gap-down on Thursday morning and after dropping down to double-bottom and 50-day moving average (on daily chart) support in the first hour of trading.
NQ bounce off key support level, 5640, reversed and then rally all day into the close, closing at the day high and just below its key resistance, the 200-moving average on the 5-minute chart, setting up a potential rally day on Friday, or a big selloff day on Friday.
Key intraday inflection price level for NQ on Friday is 5720.
-- If NQ can trade4 back above 5720 short-covering should catapult NQ up to 5780 resistance before falling back down
-- Failure to break-back above 5720 is going to attract heavy selling, downside target is a retest of Thursday low of 5640. Should that break we could see a repeat of last week Friday sharp selling, next support is 5450 to 5480
Yield Curve continues to flatten. An inverted yield curve will guarantee a recession.
