NQ traded sideways on Thursday and Friday last week, setting up for another trending up day. Key support for the current consolidation is at 13,100.
If NQ can stay above 13,100 on the current pullback then we know the short-covering is still very intense, and that NQ should resume its uptrend soon.
However, breaking below 13,100 is an indication NQ is going to pullback further down before rallying back up again. The next support below 13,100 is at 12,700.
The current short-covering bear market rally may last until the end of August. It should then be followed by relentless sell-off into the end of the year.
