Another very large selling on Friday morning with NQ trading down to within 50 points above very strong support at the provided by the daily 50-day moving average and the July consolidation high at 11,050.
It is a major battle between several major market players, between those that wants the market to melt up and those that wants the market to go down.
The stake is very high, with 11,050 acting as key line-in-the-sand.
-- A break below 11,050 in a very convincing and with a daily close below 11,050, is very likely to trigger an avalanche of sell orders capable of cause a major crash because there is NO meaningful support until 9.700 the February 2020 swing high. Considering how many novice traders currently participating in the market, we could see NQ dropping down to 9,700 in 1 to 2 days, triggering a massive panic.
-- On the other hand, if 11,050 can hold the current selling frenzies, we could see NQ going back up to retest the recent high, No matter what happens in the short term, the top is likely already been made, and NQ should starts to trend down starting very soon, if not has already started.
On the short-tern intraday timeframe, key line-in-the-sand for NQ on Tuesday will be at 11,520.
-- Bullish above it with resistance at 11,800
-- Bearish below it with first support at 11,350
