Lower than expected CPI reading on Thursday, signalling economic weakness, triggered massive selling in tech stock and massive buying in precious metal particularly gold, as many investors are expecting more aggressive Fed rate cut.
NQ dropped over 500- points, that a hiuge drop, erasing more than four day of gain. With many investores so highly leverage during the current parabolic upmove in stocks, we should see more selling to come , whether it is on Friday or not until next week, it is difficult to know.
Key support for NQ on Friday is 20.270, it should be a strong support level, coming from a combination of prior swing high on June 20th and the 20-dma on the daily chart.
Should that level is violated we could see massive intraday liquidation drop of 500 points or more as trailing stop-loss get triggered.
