The pullback rally that started on Tuesday afternoon turned impulsive on Wednesday, developed into a 5-wave rally, with wave 5 competed at the end of the day. NQ started a potential first reversal leg down (wave 1 or A) into the close.
Key Level For Thursday is 2745-2750.
-- If the end of day decline on Wednesday is the first leg down, then pullabck should stay below 2745-2750 zone. If so, expect a 3-wave decline or a 5-wave decline, with first target down at 2700.
-- If the end of day decline on Wednesday is just a profit-taking decline then NQ should break above 2750 and then breaking above Wednesday swing high. How far it goes up will depend on whether or not it can trigger a short-covering rally, with resistance at 2780.
NQ chart with potential path for Thursday
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