NQ initially struggled to break above 3800 early in the morning on Wednesday, but once it had broken above 3800 the shorts started to cover and NQ rallied almost all the way back up to Tueday swing high.
Key price level to watch for on Thursday is Tuesday's swing high.
-- Failure to break above Tuesday's high or a false break above Tuesday high could attract some selling but first support will be at 3800. Next support below 3800 is 3775. A clear break below 3775 could attract momentum algo sell programs.
-- Although I don't expect another large upmove above Tuesday's swing high, a sustained break above it could trigger some sort of short-covering rally.
