Following a huge rally day on Friday that continued into Monday, NQ traded in a very choppy narrow trading range on Tuesday, setting up a potential large trending day on Wednesday especially if the trend direction is up.
Key support for NQ on Wednesday will be at 200-ma on the 5-minute chart. If NQ happens to trade below 200-ma on the 5-min chart we could see a quick decline to support between 11,150-11,200. As long as 11,050 is not clearly violated it should bounce and rally back up from it.
Key resistance on Wednesday will be at 11,340. Trading above 11,340 could start to trigger short-covering rally, with first potential resistance at 11,500.
