On Wednesday NQ traded sideways in a narow trading range on top of prior day upper trading range. Whether or not Wednesday sideways action is a setup for the next upleg, or a prelude to a larger pullback down , will depends on where it trades in relation to key inflection price level on Thursday.
Key inflection price level for Thursday is 3710.
-- Staying above 3710 is an indication that NQ is either going to trade sideways or continuing its uptrend. In order to regain its momentum NQ would need to break and stay above 3725 and trigger another round of short-covering. If so, the next upside target a3750. Failure to break above and stay above 3725 implies contiued consolidation.
-- Breaking below 3710 implies a move down to 3700 support. If support holds, NQ shoudl rally back up to the upper trading range again. If 3700 support is breached, it may attract algo sellers that could take NQ down to 3670 support.
Gold sell-off continued on Wednesday, dropping down to strong support zone 1250-1260 area. Should 1250 is breached it could attract algo sellers that could quickly tank gold down to the 1200 support level.
