Another trend-up day for NQ on Thursday as the shorts continued to get squeezed. NQ has now starting to bump into strong resistance, 12,200 as double-top, 12n300 as prior swing low now resistance, and 12,500 as prior consolidation low.
Any of the above resistance could cause a large drop in NQ from profit-taking and new rounds of selling. However, as long as support is not violated the short-covering rally could continue.
Key support level for NQ on Friday will be at 12,000. With Friday tendency to trade sideways we could see NQ trade between 12, 00 and 12,200.
Important employment reports to be released before the market open on Friday could change the above analysis.
