For the third consecutive day, morning rallies were reversed. However, on Tuesday the closing price was below morning low and below prior trading range low, a setup for a gap-down opening that is to be followed by a wide-range liquidation decline, but it is very highly probable the Plunge Protection Team will be supporting any sell-off.
Key level for Wednesday is 2585 area.
- A sustained break below 2585 could trigger a liquidation decline, particularly if the double-bottom support 2570 (DB with March 6 swing low) does not hold.
- Above 2585 implies it is still in consolidation mode.
