Monday, May 12, 2014

Guideline For Tuesday

NQ opened with a large gap-up on Monday and then trended up all day (open-drive) closing at the day high.

The uptrend is likely to continue to the next resistance, with or without a consolidation. The next resistance is 3665 area - a double-top with April high.

Key level to watch for on Tuesday is 3610.
-- As long as NQ stays above 3610 short-covering should continue, next upside target is 3665 resistance. Whether or not it will break 3665 before pulling back, only time will tell.
-- Below 3610 is an indication NQ is going into a pullbacl mode, and as long as key support is not violated, the uptrend should resume once consolidation has ended. Key support is 3565 area.