Another large down day for major indices on Monday as credit crunch continues to intensify. CBOE volatility index, the fear index, VIX has not spiked too high, an indication that most investors are still buying the decline, implying that there are more room for the market to continue down.
Major support for NQ are 3450 and 3400, for ES supports are 1765 and 1720 and for YM major support is 15,500.
Key support for NQ on Tuesday is 3495, and 1770 for ES, and 15,725 for YM.
There are still some room for the markets to decline further before hitting major support zones,
-- Breaking below key support level will trigger another round of algorithm selling.
-- Above key support implies consolidation or short-covering / profit-taking rally
