On Tuesday, after rallying up to higher high in the morning, NQ then spent the rest of the day in a choppy narrow range consolidation pattern, closing just below key inflection price level, 7240, which should serve as key inflection price level for Wednesday's trading session.
On the 5-minute chart, at the end of the day on Tuesday, NQ looks set to pullback down to support, the 200-ma right away in the morning, as long as NQ does not opened with a gap-up above 7240.
However, with buy programs normally running very active during low volume overnight globex trading session, opening with a gap-up could either cause a trending up move to another higher high, or a gap-reversal type of day. If it is a gap-reversal type of day, the reversal downside target is again the 200-ma on the 5-min chart.
