NQ opened below line-in-the-sand on Wednesday, then after testing it from below, proceeded to trade downwards in a very narrow choppy trading range, setting up a potential big move on Thursday morning, the direction likely down if the open is below LIS, but it could also be up if the opening action is above LIS.
Key line-in-the-sand (LIS) for Thursday will be 7475.
-- A bearish morning action could tank NQ down to supports levels, they are 7440, 7425 and then 7345 which is the 20-day moving average on the daily chart.
-- Above 7475 we could see NQ rallying up to the 200-ma on the 5-min chart, which is at 7505, or up to 7540 which is the 50-day moving average on the daily chart.
