Thursday, April 12, 2012

Trade Guideline for Friday (NQ)

On Thursday, early morning rally paused only briefly at first resistance 2725 before breaking above it, then stopped just below second resistance level 2745. For Friday 2745 will still act as resistance, 2720 is now support.

Key inflection level for Friday is 2735.
  • Above 2735 implies the next leg up is in progress, targeting a break above 2745 resistance to 2755-2765. A clear and sustained break above 2745 would likely trigger a fast short-covering rally.
  • Below 2735 implies NQ is going into a pullback/consolidation mode, decline target 2720 then 2710.
For longer term view, here is Investors Intelligence Bull/Bear Sentiment Chart as posted at King World News
Link to the KWN report here:
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