Ahead of the Fed Chairwoman Janet Yellen's testimony on Wednesday the stock market was engineered higher on Tuesday night, designed to cause a huge gap-up open to trigger a short-covering rally to make Janet Yellen looks good.
As it gets closer to the opening bell, it was clear the stock indices were going to open with a huge gap-up. The buy programs never stopped as it continued all day on Wednesday, but without many new buyers, the market simply rally in a very slow and choppy manner.
With NQ now above key moving averages on the daily chart, all algorithm are now on buy mode. Whether or not it continues to rally on Thursday or trade sideways to consolidate the huge Tuesday's rally, will depends on where it trades on Thursday.
Key inflection price level for NQ on Thursday will be 5765.
-- Trading above 5765 implies NQ is going to continue to rally, and the next strong resistance is not until 5850.
-- Breaking back below 5765 is an indication NQ may be going into a sideways consolidation mode, next support is 5735
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