Another sideways trading pattern for NQ on Thursday as early morning selloff continues to be bought. Until NQ can break down below 5900 key support the choppy sideways trading pattern is going to continue, with selling continuing to be bought.
On the daily timeframe, NQ is competing a 5-wave ending diagonal trading pattern, with lower trend line support now at 5900. Until NQ can decisively break below 5900, every decline is going to be bought.
Key price level to watch on Friday will be 5970.
-- Breaking back above 5970 could trigger some shorts to cover. Whether or not that would lead to sharp rally is difficult to say because insiders continue to sell every rally in order to lightened up their long positions ahead of the inevitable large sharp decline.
-- Clearly breaking below 5900 has the potential to trigger an avalanche of selling that could overwhelm buy programs.
