A sideways type of day for NQ on Friday, with pullback decline i9n the morning followed by a rally, then another pullback down move in the afternoon.With a close right at prior swing high in January, NQ could either trend up all day on Monday if the shorts decides to cover, or breakout above prior swing high and then reverse if profit-taking gets too much.
As such, a good line-in-the-sand to for Monday trading is January swing high at around 13,600. If NQ can breakout above it and then stay above it, we could see an all day short-covering with a realistic next upside target at 13,750-13,800, but it can go higher.
Breaking back below 13,600 after trading above it can trigger a sharp and relentless reversal back down as trailing stop-losses get run over..
