On Wednesday NQ traded sideways below double-top resistance at 6013, the high of the day on September 01, 2017. NQ has been trading below that price level for many days as the Fed buy programs continues to support distribution activities by insiders.
With so many stop-loss congregating just above 6013 they are going to try to cause a breakout above 6013, and as long as profit-taking selling activities does not overwhelm the short-covering, the rally should continue after the break.
However, heavy profit-taking selling could push the market back down below 6013, triggering long-covering.
The double-top resistance at 6013 will be key price level on Thursday.
-- A clear and sustained break would force some shorts to cover, triggering a short-covering rally.
-- A false break above 6013 is going to trigger heavy selling, and first support is at 5990 then key support is at 5950.
