After a sharp morning decline NQ rallied the rest of the day on Tuesday closing near the day high. NQ has now broken above key inflection price level of 4160 on the 60-minute chart.
As long as it can stay above 4160 on Wednesday, short-covering rally should continue, next resistance is 4200 and then 4220.
Breaking back below 4160 could attract sellers that can take NQ back down to 4100 support. Key market to watch for on Wednesday is the crude oil market.
Market is waiting for the ECB decision on their QE to be announced on Thursday. The question is, will there be real action on QE or will it be just talk from Mario Draghi, the market is waiting.
