Another sideways consolidation day for NQ on Wednesday. Two days of consolidation should provide a lot of energy for NQ to rocket up and break through resistance on Thursday. Key support for NQ on Thursday will be the 200-ma on the 5-minute chart, 13,600.
To do so, NQ should stay above 13,600 and then continue to push higher above Monday high and trigger short-covering and buying by traders waiting on the sideline. A trending-up day should last all day perhaps with a small end of day profit-taking selling.
In the event that NQ trades below its 200-ma on the 5-minute chart, and pushes lower, we could get a large liquidation decline, with first support at 13,300. Washout for a negative impact of Archegos Capital debacle.
