Tuesday, June 14, 2011

Trade Guideline For Wednesday (Nasdaq NQ)

A bullish day on Tuesday, closing at key inflection point 2245. Was Tuesday's rally a one-day pullback up in an ongoing downtrend on the daily chart?, or was it the beginning of a consolidation on the daily chart?. Wednesday's price action would give us more clue as to what the market is telling us.
  • If Tuesday was just a one-day bounce within a strong downtrend market we should see either a narrow-range consolidation day Wednesday or a bearish day testing or breaking below Monday's low. 
  • If a consolidation on the daily chart is in the card NQ should stay above 2245 and rally up to 2255 - 2265, then closing in the positive territory.