After opening higher on Monday and then closing the opening gap, NQ rallied into 1305 resistance. When it failed to break above resistance, profit-taking activities dropped NQ down to support, then closing near the middle of the day trading range.
For Tuesday I am looking for NQ to rally as long as it does not violate key support. However, it needs to break above 3005 to trigger a short-covering rally. Failure to do so could easily cause NQ to trade sideways.
A clear violation of key support will be bearish, and is an indication that we should be looking for short trades.
Key support for Tuesday in NQ is 2970 area.
