Nasdaq stages short-covering bounce

After dropping to our main target below the summer lows, the Nasdaq and many other global indices have staged a bit of a relief rally today.

I reckon today's recovery is driven by short-side profit-taking. As such, I wouldn't rule out the resumption of the selling around current levels of 11160ish (old support and resistance).

I would drop my short-term bearish bias only in the event the index goes on to break and hold above the nearest high at 11550.

By Fawad Razaqzada on behalf of FOREX.com