As expected, following a large up-trending day on Monday NQ traded sideways on Tuesday, consolidating the huge rally.
Consolidation day or days sets up another up-trending day, likely to occur on Wednesday and the trend should be up, as long as nothing unexpected happens overnight to drastically change the market outlook.
Key price level to watch for on Wednesday will be at 12,100. Trading above 12,100 implies a likely trending up day on Wednesday.
Trading below 12,100 simply implies NQ needs to consolidate further, and as long as NQ does not clearly break 12,000 support during consolidation, the rally should resume after consolidation has ended.
The next resistance is around double-top with September high, around 12,400. The short-covering is intense, I think NQ should break above September swing high before reversing back down..
