Wednesday, October 12, 2011

Trade Guideline for Thursday (NQ)

Uptrend continued on to double-top 2332.50 on Wednesday, but failure to break above double top caused the market to pullback down to support (2290-2295) at the end of the day.

If 2290-2295 support hold on Thursday, the uptrend should continue, but it has to break-back above Line-in-the-sand (2315) to trend up again and break through double-top.

  • A break above double top target a move up to 2350 area.
  • Failure to break-back and stay above 2315 implies a bigger pullback down-move is likely, targeting a decline down to 2265-270 area.