An open-drive up type of day for NQ on Tuesday, but at the end of the day, it looked set for a pullback on Wednesday. How far will the pullback be would determine if a pullback is just a quick pullback before rallying back up again, or is it going to pullback down for a few days.
Key price level for NQ on Wednesday will be 3585.
-- Trading above 3585 is an indication that short-covering should continue, but strong resistance reside at 3600 and 3620. It would requires a big algo buy programs to rocket through those resistance levels.
-- Trading below 3585 implies a likely pullback-down scenario. As long as NQ does not break below Tuesday's swing low, the rally should resume, but it will needs to clearly break above 3585 to trigger a potential fast short-covering rally.
S&P 500 and the Dow are both not very far from breaking the previous swing high, they could pullback before a break or they may break the high before pulling back. The jury is still out.
The conflict in Ukraine continues to get worse, and should continue to influence the markets.
