Wednesday was day 7 on the current downtrend that started on February 16th, and it was a reversal day, a huge rally day..
At the close NQ was trading above minor resistance, and set to trend up to the next resistance at 13,400 followed by stronger resistance at 13,500. With a lot of shorts having to cover, NQ could easily break above 13,400.
However, the key indicator to watch is the 10-year treasury yield. As long as the 10-year treasury yield does not spike above 1.5% overnight, we should see short-covering pushing the equity market higher in the morning on Thursday. Should the yield spike above 1.5% we could see massive selling come Thursday morning.
NQ next upside target is between 13,400 to 13,500, which will be key resistance going forward. Key support is at 13,120
