As expected, after a choppy early morning price action NQ started to trend down. Breaking below day low started to run-over trailing stop-losses, causing the market to tank fast and large, generating a large down day for NQ on Thursday.
With Friday normally a choppy consolidation day, it is also still possible for NQ to trend down hard on Friday if the day low on Thursday which was a 20-period moving average on the daily chart is clearly violated..
If Thursday low is not clearly violated and NQ traded sideways, the first resistance is at 10,620 area. Failure to break above that level implies sideways consolidation or a down day. A clear and sustained break above 10,620 could start to run-over some trailing stop-loss and cause NQ to rally higher.
Key line-in-the-sand for NQ on Friday will be at 10,620.
