Thursday, January 5, 2012

Trade Guideline for Friday (NQ)

A clear and sustained break above 2325 on Thursday triggered a short-covering rally that lasted most of the day, then closed right at key inflection point for Friday.

Key level for Friday is 2340.
  • Above 2340 implies the next up-leg is on its way, targeting a move up to 2365-2375 area.
  • Below 2340 implies it needs more consolidation before breaking back up. Consolidation target down is 2325-2330. A clear break below 2325 implies a larger pullback down or a trend reversal.