The stock market sold off very hard on Wednesday, particularly the technology stocks, with NQ dropping down over 300 points.
Usually following a large down day we get an oversold bounce, a sideways non-trending consolidation type of day.
However, a clear and sustained break below Wednesday swing low could trigger another large down day again, a crash.
For Thursday, support is Wednesday low and resistance is at 6960.
-- Failure to break above 6960 is going to attract another round of selling.
-- Breaking back above 6960 should trigger some short-covering rally, next resistance is at 7100 again.
-- Breaking below Wednesday low could cause another waterfall decline, but watch out for a false break below Wednesday low that could cause a fast reversal.
