The last two sessions has seen a lot of selling, the markets have shed about 10% in the past 2 days. Making matters worse for the bulls is that each day has ended at the low of the day. A quick glance at the daily chart for NQ, we can see volume picking up.
NQ Daily
We are trading below the 20 DMA, the recent support around 1268.50 and below the mid-line. Right now price has traced back to the 62% fib level relative to the bottom and recent high. I will be watching this area with interest tomorrow, if support fails I would expect selling all the way down for a double bottom test. What I am expecting to happen is a push higher to test the 20 DMA and the mid-line.
I've noted the key volume levels to monitor, if VR1 is broken I will stand aside, if VR2 is approached we can expect a major breakdown with continued selling for the next few sessions with increased volatility.
NQ 15 MIN
I've notice on the 15min chart a downward channel has formed. I would expect to see the same type of slope Friday when selling continues. If the market can turn itself around next week the following chart shows some technical level I will be looking for.
NQ
Key levels for the bulls are: 1266, 1287, 1335, 1363
Worth noting, the new up trend-line in green. We now need a swing low to draw our up-trend trading channel.
NQ Daily
Profit
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