On Thursday the Fed attempt to trigger a breakout rally day the day after their policy announcement, failed as huge gap-up opening was sold aggressively, triggered a bearish reversal engulfing candle on the daily chart.
Although they were able to rally NQ back up above key breakout price level at 5900, both NQ and S&P500 needs to break-back above reversal bar high to negate the current bearish technical pattern. Until then, heavy selling can come back without warning and tank the market hard.
Going forward and on Friday, key price level remains at 5900.
-- Selling remains under control as long as NQ remains above 5900. NQ either trade sideways on Friday or rally , with first resistance at 5935
-- Breaking back below 5900 on a closing basis, on the daily chart, is likely to attract heavy selling that can get out of control.
