With the end of the year and into January seasonal bias to the bullish side, Monday morning selloff in the market was reversed, NQ rallied the rest of the day and then close at the day high which was above the early morning high and right at FT Pivot resistance, and above key inflection price level of 4600 for Tuesday.
As long as NQ can stay above 4600 it should remain bullish but it has to clearly break above 4630 to ignite another round of short-covering, failure to break clearly above 4630 could attract short sellers that could send NQ back down to 4575 support. However, NQ needs to break below 4575 to trigger another round of selling.
Key resistance for NQ on Tuesday is 4630.
-- Failure to break clearly above 4630 could send NQ back down to 4575 support.
-- Breaking above and staying above 4630 is an indication the current upswing on the daily chart is still in progress. If so, short-covering can easily push NQ back up towards resistances 4680 and then 4700.
