The market rallied sharply in the afternoon, but pulling back down at the end of the day, retracing 50% of the afternoon rally for NQ.
The pattern on the 5-minute chart is set to open with a gap-up and trend up on Tuesday. However, the daily trend is still in a strong down mode, which may negate the 5-minute bullish chart pattern.
Key resistance for Tuesday is 2870-2875 area, support is 2830-2835.
-- A clear and sustained break above 2875 could trigger a fast short-covering rally with target at 2905-2910.
-- Below 2875 implies NQ is going back down to support 2830-2835. Below 2830 implies the daily downtrend is still in progress, and a break below Monday low could trigger another round of liquidation drop.
Bond market is still in sharp selloff
