On Wednesday, with the Dow and the S&P 500 Futures contract remaining below key resistance, unable to break above, they then dropped back down to close negative for the day, a down day.
NQ remained above key support, although it was dragged down by the Dow and the S&P 500 as it sold off hard into the close.
The stage is set for a strong decline going forward unless the Fed buying algorithm came in to the rescue. The lower the market go the heavier the selling will become, creating a negative feedback loop that can cause a crash.
The 1987-style crash scenario is still very much in play as short volatility trades are forced to unwind if the stock market continue to go lower.
Key support for NQ on Thursday will be 6675.
-- With both the Dow and the S&P 500 futures below their resistance, NQ breaking below support is very negative for the overall market.
