On Tuesday, short-covering soon after the open did not attract any buyers, hence the market sold off for the rest of the day.
For Wednesday the key inflection level is 2225. Resistance is Tuesday's swing high 2240.75, support 2200.
- A sustained break above 2225 should trigger another round of short-covering that could easily push price up to Tuesday's swing high resistance 2240.75. A falsebreak above would cause the market to reverse back down to support 2200. However, a sustained break above the high should rocket price up to 2255-2260.
- A sustained break below 2225 should tank NQ down to 2200. A sustained break below 2200 should trigger another round of liquidation , targeting a decline down to 2275-2280.
