On Thursday NQ opened with a large gap-down to below prior day low, triggering sunning over trailing stop-losses which cause a big sell-off in the morning.
After the end of morning downtrend, NQ then traded sideways during lunch, then after breaking above the 50-ma on the 5-min chart, NQ then rally into the close.
But the choppy sideways price action from lunch into the close looks like it could be a setup for another down-leg on Friday morning.
Key NQ price level to watch on Friday will be 6900
-- If NQ should trade above 6900 at the open, it is an indication the decline has ended, and daily uptrend has resumed, first upside target is 6980.
-- Should NQ opened and trade below 6900 at the open we could see NQ drop down to key support 6800-6830, prior consolidation high now acting as strong support before it rally back up. However, . should that support zone get violated we can easily see NQ dropping down to lower supports, 6745, then 6625
