The equity market sold-off hard on Friday, closing at the low of the day. The sell-off is likely to continue in the morning on Monday, with a gap-down open, but we shall see what will happen as we get closer to the open.
On a gap-down opening scenario, if support hold, buying should come in and cause the market to rally to resistance. If support breaks, selling algorithm could cause another large down day.
On a gap-up open, however, with many traders still holding short position, it could trigger a short-covering rally, with resistance at 3555-3565. More short-covering on a sustained break above resistance, but look for selling to come back in if NQ is not able to break through resistance.
Support for NQ on Monday is 3500-3510, Resistance for NQ on Monday is 3555-3565
