Friday was the second rally day following a bounce off the 200-day moving average on the daily chart. The two consecutive day of rally has taken NQ back up to just below strong resistance at 7800.
If NQ can break and stay above 7800 we could see another sharp rally day. But failure to break or stay above 7800 will attract short seller and tank the market back down to the 200-dma key support on the daily chart.
Key short-tem intraday inflection price level is 7740.
-- Trading below 7740 is an indication NQ is going down to text the 200-ma on the 5-min chart, which as of Friday's close was at 7650. If that should break we should see a retest of the 200-dma on the daily chart.
-- Trading above 7740 will keep the intraday 5-minute trend in the bullish camp, but strong resistance is at 7800. NQ would need a sustained break to trigger short-covering rally.
