After rallying strongly from the day low on Monday, the market consolidated and traded sideways on Tuesday, setting up a potential trending move on Wednesday if it breaks out of the range.
The direction of the move will depends on where it trades on Wednesday, with the closing price right in the middle of range, NQ could go either way, with key resistance at 2875, key support at 2845.
With stop-losses congregating just above 2875, a sustained break above 2875 resistance could trigger a short-covering rally, next resistance is 2905-2910.
However, failure to clearly break above 2875 could attract selling which could drops prices down to re-test Tuesday's swing low. A break below 2845 could trigger liquidation decline.
Gold still in a strong downtrend also traded sideways on Tuesday, setting up a big drop on Wednesday, supports are 1240 and 1180
