As expected, NQ sold off hard on Wednesday, dropping down to critical support at 7400, and in deep oversold on the intraday 5-minute timeframe, and may need to bounce before resuming its downtrend.
Key intraday inflection price level for NQ on Thursday will be 7500..
-- If NQ can stay above 7500 on Thursday we could see a rally towards the 200-ma resistance on the 5-minute chart, but with the market being so bearish, there is a good chance it may not get up to the 200-ma before sellers come back in.
-- Very bearish below 7500, with critical support at 7400. A clear break below 7400 could trigger massive liquidation selling with first support at its recent low, 6800.
