After spending the whole morning trading sideways in a choppy and narrow trading range NQ finally dropped down below support on Wednesday, triggering a round of algorithm sell programs, which many blamed on Trump-China No-deal news. However, the market was in deep overbought territory and needed a pullback.
The pullback is still above support on the daily chart, as such should continued to be bought, as long as it remains above 8200 which is the critical support on the daily timeframe. Should we see 8200 decisively gets broken to the downside, we could see strong selling as trailing stop-loss gets liquidated.
For Thursday key intraday line-in-the-sand for NQ will again be 8325.
-- If NQ remains below 8325 we could see more selling coming in on Thursday.
-- Breaking back above 8325 should keep selling under control, and a continuing choppy action for NQ
