Following a sharp sell-off on Wednesday, the stock market traded sideways in a consolidation fashion on Thursdays.
Disappointing earning from stocks such as Amazon and Facebook, to name a few, after the market close on Thursday tanked the market hard in overnight trading. NQ has already traded down over 200 points from the close.
Without massive intervention by the Fed-PPT on Friday could result in a stock market crash as there is no buyers when everyone was already long the market.
Key price level for NQ on Friday is Wednesday swing low of about 6800.
-- If the PPT can keep NQ above 6800 on Friday it should stabilized the market keeping it from crashing.
-- However, a sustained break (not a falsebreak) below 6800 has the potential to crash the market as the longs are forced to either top up their margin or get liquidated by the brokers.
