Tuesday, April 3, 2012

Trade Guideline For Wednesday (Nasdaq NQ)

Tuesday was a sideways consolidation day with the close near middle of the day range. Consolidation day tends to sets up a trending type of day, and where it trends would depends on how it trades in realtion to the key inflection level.

Key level for Wednesday would be 2780.
  • Above 2780 implies it is trending up, next target up is 2800 area.
  • Below 2780 implies it is still in a pullback / consolidation mode, downside target 2755-2760. A clear and sustained break below could trigger a fast liquidation down to 2735-2740.