Monday, October 3, 2011

Trade Guideline for Tuesday (NQ)

As expected, Monday was another bearish trending down day, with a close at the low of the day. It may at some point have to bounce back up to 2100 (although not necessary) to relieve the oversold pressure. But as European sovereign debt crisis intensifies, the sell-off in the stock market should continue.

Key Line-in-the-sand for Tuesday is 2100.
  • Below 2100, NQ is in a fast move down to 2030-2040, then 2000.
  • Above 2100 implies the market is going to pullback up (temporarily) to 2140-2150 before going back down.
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