A sideways trading pattern for NQ on Tuesday. After opening with a gap-up and a trend up into another higher high in the morning, as usual, profit-taking and distribution selling activities pressured NQ downward. NQ traded slowly downward all day.
NQ opened above previous swing high from January 27th that has not been breached until Tuesday, thus making January 27th swing high, 5168, an important support level, as numerous algorithm trailing stop would sit just below 5168 price level.
-- As long as NQ remains above 5168 it should continue to make a higher high before pulling back down due to profit-taking and distribution activities.
-- Trading back below 5168 is an indication NQ is going back down into prior trading range, and likely to test 5145 support.
