A gap-down and trend down day for NQ on Wednesday with a sharp rally at the end of the day as investors cover their shorts ahead of the long weekend, setting up a bullish Thursday as shorts continue to cover.
NQ is up after market, setting up a potential gaap-up open that is likely to forced more shorts to cover. If so, we should see sharp rally to resistance 18,800-18,900 in the morning then trade sideways.
Key price level to watch for is 18,430. NQ has to stay above 18,430 for the above setup to play out. Breaking back below 18,430 is bearish.
