As expected Tuesday was a narrow-range consolidation day following a very bearish wide-range down day on Monday.
For Wednesday we either get (1) another pullback up-day or (2) a resumption of the downtrend, and it will depends on where it trades in relation to its key price inflection level.
For Wednesday, key price inflection price level is 3455 for NQ and 1744 for ES
-- Trading below is an indication that the downtrend is likely resuming, with key support to break through at 3430 for NQ and 1738 for ES.
-- Next support for NQ is 3400, 1:1 downside target for NQ is 3362, next support for ES is 1720 and 1:1 downside target for ES is 1710. Whether or not support will hold will depends on the momentum of the drop, and whether or not the Yen is confirming the drop.
-- Trading above key inflection price level is bullish, with the next upside target is a break above Tuesday's swing high.
-- Resistances are 3480 and 3500 for NQ and 1765 and 1770 for ES
