Another sideways choppy trading action on Wednesday, the fourth day in a row trading inside a narrow trading range between 3780 and 3805. NQ is setup up for either more consolidation inside the range or a pullback down day, but I will not discount a breakout to the upside as well.
Key price levels are 3780 support and 3805 resistance.
-- A clear break below 3780 could trigger some kind of a stoploss selling but it may not be a very large drop because strong support resides at 3740 area.
-- A break above 3805 may trigger another round of short-covering rally but it would likely be a slow and choppy rally because there is not more buyers at this level, as the only buyers are the Fed buying though their proxy.
