Following a reversal down day for NQ on Tuesday, NQ opened and sold off hard in the morning on Wednesday, dropping down to 20-ma on the daily chart where buyers came in very aggressively, reversing NQ back up to above the morning high and close just above the 200-ma on the 5-minute chart.
The 200-ma on the 5-minute chart (9420) will be line-in-the-sand for NQ on Thursday.
-- If NQ opens above 200-ma on Thursday we could see a short-covering NQ rally. If so, the upside target is above Tuesday swing high.
-- If, on the other hand, NQ should trade below the 200-ma on the 5-minute chart soon after the open on Thursday then we could see NQ dropping back down to the 50-ma on the 5-minute chart, with key support at 9340.
-- A clear break below 9340 is an indication NQ is going down to retest Wednesday's low.
