After three consecutive days of narrow-range choppy consolidation days hovering just above prior swing high, the July high, the shorts finally gave in and starts to cover on Thursday morning. As a result it triggered a large rally day, a true breakout day, with the low near the open, and the close at the high of the day.
The rally may have finally exhausted itself and trend reversal may be going to happen at anytime now.
Key support on the intraday basis is the 200-movng average on the 5-minute chart. As long as NQ continues to trade above it, the uptrend is still in progress.
A clear break below it, which should happen soon, is an indication NQ is going into a larger consolidation down move, targeting 11,000 - 11,050 area.
Should NQ drops lower, and break below 10,980, we could see a massive liquidation selling as trailing stop-losses gets run-over.
