After a brief mini pullback soon after the open on Thursday morning NQ chopped its way higher, fueled by short-covering, and closed at the day high.
NQ is now in overbought territory on the 60-min chart, but not on the daily, so on Friday NQ is either going into a consolidation mode or continued to chop higher.
Key price level for NQ on Friday is 3970 resistance.
-- Trading above 3970 is an indication the shorts may continue to cover, next upside target is 4000.
-- Staying below 3970 implies NQ is going into a consolidation mode, likely to attract some profit-taking selling ahead of the long weekend, first downside target is 3945, now support.
