As the proxy war between the American and the Russian in Ukraine intensifies the market got spooked, sold off hard, opened with a large gap-down on Monday.
Although large buy programs tried to rally the market both ES and NQ were not able to break-back above support-turned resistance, 1848-1851 for ES and 3670 for NQ.
Seller sold resistance with a vengeance and tanked the market hard. Buyers again tried to mount another rally in the afternoon and the market rallied back up to just below resistance at the close. The Fed buy programs should continue to be active in the market.
Key price zone for ES on Tuesday is 1848-1851 resistance and for NQ it will be 3685 resistance.
-- Failure to clearly break above resistance is going to attract strong selling that could tank the market back down to lower low.
-- A sustained break above resistance could cauase some short-covering rally.
Russian warships has blocked Ukrainian warships from leaving the port.
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