NQ again rallied on Thursday as the shorts continued to cover. With NQ daily chart just starting to enter overbought territory we could still see NQ continuing to rally to its key 200-dma before pulling back down.
On the intraday 5-minute chart however, NQ entered a pullback consolidation mode in the afternoon on Thursday. Unless NQ can clearly breakout and stay above Thursday swing high we could see NQ pulling back down towards its 200-ma on the 5-minute chart, with downside target of between 6820-6840.
Key intraday line-in-the-sand for NQ on Thursday will be Thursday swing high of 6945.
