The 50-DMA support was aggressively defended on Friday. Buy programs managed to slowly rallied NQ up to 5845 resistance, closing just below it, making 5845 key price level, a resistance level for Monday.
Thus trading above 5845 may trigger buying and short-covering, the next resistance zone is 5870-5880 area, then at 5900.
Trading below 5845 could attract sell programs, but NQ would need to break back below 5800 to cause massive selling. If so the next lower support is at 5680
Sharp sell-off on Thursday resulted in a sharp spike in volatility which had recently touched historically low levels around 8.5. While this may not the beginning of the next cyclical upswing in volatility just yet, it should serve as a good reminder of what will happen when volatility does return
