Trade Guideline For Wednesday

Nasdaq continued to consolidate on Tuesday, trading between support and resistance. A clear and sustained break out of the trading range could trigger a fast trending move in the direction of the breakout. 


Key Level for NQ on Wednesday is 2545.

• Above 2545 implies it is going up to the next resistance zone 2560 - 2565. On a strong short-covering rally, a clear and sustained break above 2560-2565 could take NQ up to 2580-2585 resistance.
• Bearish below 2545, first downside target is a re-test of Monday's swing low. A clear and sustained break below Monday low can trigger a fast liquidation drop to 2505, then 2440-2460

Key Level For ES is 1314, 

• Resistance is 1316, 1320, 324, 
• Support is 1306, 1300-1302
• A clear and sustained break below 1300 could trigger a fast liquidation drop.

Credit contraction in Europe is very bearish, and could trigger a stock market crash, so be on a lookout. Bloomberg reported that Spain is poised to be downgraded to junk as CDS near record.

http://www.bloomberg.com/news/2012-06-26/spain-poised-for-downgrade-to-junk-as-default-swaps-near-records.html