On Tuesday, Nasdaq opened with a gap-up to resistance then promptly dropped down to close the gap & to FT Pivot support before bouncing back up to re-test resistance and complete the ABC zig zag wave up (equal leg up) that started on Monday afternoon. Once completed NQ quickly tank, breaking below several support levels before stalling just above strong support at 2795.
Key Level for Wednesday is 2795 support.
-- Above 2795 implies the current downtrend that started on Tuesday has ended, look for pullback up to 2815.
-- Above 2815 implies it is going into consolidation with 2825 as upside target. It would need a very bullish market condition to clearly break above 2825 resistance zone.
-- Below 2795 implies more liquidation, lower support levels are 2785, 2775, 2760. It would need a very bearish market condition to break below 2760. If so, next support is 2740.
FT Pivot = 2818.50
R1 = 2838.75
S1 = 2784
