While NQ and S&P 500 traded sideways in a choppy narrow-range trading action on Wednesday, the Dow surges strongly into another higher high, an indication that the market breath is getting really bad, and the market top is really not too far away.
Still expecting the market to top in between late November to early December 2017. Until then, looking for the market to continue to rally or trade sideways as the market nears the end of distribution pattern.
Steven Mnuchin has a stern warning for Congress: Pass the Trump tax bill or we'll crash the stock market, and then blame congress. Several events, including the tax bill, are setting up for a spectacular market crash.
On the short term timeframe, support for NQ on Thursday will be 6115.
-- Remaining above 6115 is an indication NQ is going to make another higher high before selling comes in to push the market down.
-- Trading below 6115 has the potential to trigger some selling that could take NQ down to lower support zones, either to 6100 or lower to 6085. It would need a very bearish market internals to break below 6985 support.
