On Wednesday, after a brief decline down towards trading range support, NQ quickly rallied up, breaking above key trading range resistance at 3740. NQ remains above 3740 at the close, a positive momentum into the close.
On Thursday, NQ may or may not pullback in the morning before making another higher high above Wednesday's swing high.
Key support for Thursday is 3740.
-- Staying above 3740 is an indication NQ is going to higher high right away.
-- A clear break below 3740 is an indication NQ is going into a puylback mode before running back up again. On a pullback down, the next support is 3725. As long as 3725 is not clearly violated the uptrend should resume. If 3725 is broken, lower supports are 3710 and 3700.
The latest investors sentiment is showing (end of May) that the bulls were at 62.2, an indication the market is now at an elevated risk of a major pullback. When that pullback will commence, only time will tell, but the previous time the Bull reading were this high were:
1. At the end of 2013, bull reading was at 60.8 prior to the the early 2014 pullback,
2. Then in August 1987 at 60.8 just before the 1987 crash
3. October 2007, at 62, before the big crash
