On Thursday NQ opened below prior day low which triggered breakout selling algos which then start to run over trailing stops for the longs, which caused it to tank easily breaking below its 20-dma on the daily chart, then crashing below its 50-dma on the daily chart. Thursday was a large down day for NQ.
NQ managed to rally at the end of the day and managed to closed just below its 50-dma on the daily chart, which was broken, making the 50-dma which sat at 7525 at the close on Thursday a key resistance level on Friday.
For Friday NQ resistance is at 7525 and support at 7457 which is Thursday swing low.
-- Failure to break-back above 7525 is bearish, but key support is at 7457, Thursday low. NQ needs to clearly break below 7457 to trigger another round of liquidation selling. If so, potential supports are at 7430 then 7370.
The Fed and or the PPT is sure to intervene aggressively on Friday to prevent stock market crash. Will they succeed will depends on where NQ trades in relation to its key level, 7457 support, 7525 resistance.
A breakout of the range could cause a fast move out of the 7457-7525 trading range
