A large gap-up open on Thursday, wave 3 up opening, triggered short-covering rally that lasted all day, with a small profit-taking decline into the close. Friday is usually a bullish day, typically with some selling in the morning and then rally into the afternoon as traders will cover their shorts ahead of the weekend.
Whether or not all the short-covering has been exhausted by Thursday's massive rally, only time will tell, and will depends on where it opens and trades in the early morning
Key level for Friday is 3200 for NQ.
-- Opening and trading above 3200 on Friday morning should continue to trigger short-covering rally.
-- Below 3200, however, implies NQ is going into a consolidation mode.
Debt ceiling debate is going to continue influence market action.
