Even with massive money printing by the Fed the stock market up-trending move may have finally break on Thursday. Nasdaq sold off hard on no news, a bearish sign. The managed to rescue the market today, but the question is, for how much longer.
NQ sold off hard in the morning on Thursday, over 200 points down from previous day close. Although they managed to push it back up half way, NQ has continued to sold off in overnight trading, setting up a gap-down open on Friday.
Although Friday tends to be choppy sideways day, if NQ break below Thursday swing low, and then unable to rally back up, we could see massive liquidation as trailing stop-losses gets run-over, and can cause a flash-crash.
Key inflection price level for NQ on Friday will be at 9600.
-- Bearish below 9600 with key support at 9550. A sustained break below 9550 could trigger massive selling. -- If NQ can stay above 9550 we could see the usual sideways trading pattern on Friday.
-- Trading above 9600 could force the shorts to cover. If so, the next resistance is at 9670
