On Wednesday NQ opened down below key 50-period moving average on the 5-minute chart and below the 50-period moving average on the 60-minute chart, triggering massive algo sell programs tanking NQ down to crucial intraday breakout support level at 7590, prior day low.
After a brief bounce off support NQ quickly broke below support running over trailing stop-loss, quickly sinking NQ down to a very important support, multiple support coming from the daily chart 20-period moving average (7500) and prior swing high, Aug 09 high-turned support at 7505.
On Thursday 7500 will be a very crucial support simply because it is a strong support level.
--- and a break below 7500 is a break below 20-period MA on the daily chart, likely to trigger algo selling. If so the nest support is its 50-DMA on the daily chart which now sits at around 7380, and that would be a quick 120 points drop.
-- If NQ stays above 7500, it could attract some breakout re-test buyers and 20-ma buyers on the daily chart. If so it could rally to the next key resistance at 7620. Heavy profit-taking selling could also keep NQ in a sideways reading range pattern.
