On Wednesday NQ opened and traded down to support, trying to duplicate Tuesday's price pattern. However, the market does not usually repeat the exact pattern two days in a row.
Instead of rallying after the initial decline soon after the open in the morning NQ traded sideways then broke below key support. This time there was not much buying below support, instead it triggered a massive selling which ran over massive numbers of trailing stop-losses, triggering massive selling that lasted into the close.
On Thursday, it is likely NQ may make another lower low, down to support before rallying sharply, perhaps during lunch or in the afternoon depending on when it makes a lower low.
Key support, provided by previous swing highs, one from November 16th, at around 12,260 then at 12,020 from October 12 swing high.
If we get a bearish market internals on Thursday, because there are so many traders long the market, a continual margin call on Thursday could cause heavy selling that would easily crash through those above supports, 12,020-12,260 zone.
