On Monday, NQ opened with a large gap-up, forcing shorts to cover, triggering a brief small rally in the morning. Without any new fresh buyers NQ spent most of the day trading sideways in a very narrow range.
On the daily chart, Monday was the 7th up-day in a row for NQ from its August 8th low, so it may be ready for a 1 to 2 days pullback. With most shorts out of the market, without a pullback day it may just chop its way higher unless there are fresh buyers coming into the market.
On the 60-minute chart we have a 5-wave rally for NQ from its Augusr 8th low, so an ABC-wave pattern pulback is overdue and could come at anytime. As long as there is no severe pullback, NQ should continue to rally, next big target for NQ on the daily chart is 4050
Key support for NQ on Tuesday is 3990-3995.
