Nasdaq opened and tank hard in the early morning trading, dropping down to just below support zone before pausing and consolidated the rest of the day. The current consolidation pattern is in the form of a bear flag, a setup for the next liquidation decline.
The 60-minute Head & Shoulder chart is still intact at the moment. As long as it remains intact, target down is 1570.
The 60-minute Head & Shoulder chart is still intact at the moment. As long as it remains intact, target down is 1570.
++16_04_2012.jpg)
For Tuesday, key inflection level is 2660, bullish above, bearish below.
- Sustained break below 2660 implies consolidation has ended and the next liquidation decline is in progress, heading down towards the head and Shoulder target of 2570. The decline could be fast and furious as more and more sell algorithm gets triggered.
- Above 2660 implies NQ is still in a consolidation/pullback mode targeting 2680. A sustained break above 2680 could trigger a snap-back short-covering rally, with upside target of 2700-2705
Spanish bond yield briefly spiked above 6% on Monday. 6% level is a key level, above implies the country's debt situation is in crisis/default territory.
