Monday, October 17, 2011

Trade Guideline for Tuesday (NQ)

Monday was a pullback-down day for Nasdaq with a close near the day low, implies momentum was very bearish into the close. If the end of day momentum is going to continue on Tuesday NQ should stay below Line-in-the-Sand
For Tuesday I will use 2335 as key Line-in-the-Sand.
  • Below 2335 implies the NQ is still in a down mode targeting the next support at 2315 then 2300.
  • Above 2335 implies the market is going to re-test 2355. Above 2355 implies a re-test of Friday's high.
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