NQ traded sideways again on Tuesday, the fifth day in a row inside the 5365-5400 trading range. Attempted upside breakout near the open on Tuesday failed and NQ drifted back down to the middle of the range.
For Wednesday key price level remains 5365 support and 5400 resistance.
-- A sustained break out of the range is likely to trigger a trending move out of the range.
-- A false breakout of the range should reversed back in.
NQ remains above its key 50-day moving average on the daily chart. Until it breaks, NQ could remains in a choppy sideways mode unless it can clear 5400 resistance.
However, both S&P 500 and the Dow has broken below their respective 50-day moving average dragging all the markets down with them. If NQ can get dragged down below its 50-day moving average, we could see a very big down day.
