On Friday, massive algorithm sell programs triggered at the open continued all day long - the main reason for the sell-off is likely the conflict between the Russian and the American over Ukraine. But whatever it was the selloff was massive, with small profit-taking rally near the close.
Whether or not the sell-off needs to be consolidated on Monday, only time will tell, and it will depends on where it trades in relation to key price inflection level.
For Monday, Key price inflection level is 3540 for NQ and 1860 for ES
-- As long as NQ can stay above 3540 it is going into a consolidation mode, resistance at 3580. ES resistance is 1868 and 1876.
-- If 3540 and 1860 does not hold momentum algorithm sellers would come back into the market, next support for NQ is 3500, and if 3500 does not hold, the next support is not until 3400.
Pro-Russian protesters walk across barbed wire as they storm the
regional government building in Donetsk. Photograph: Stringer/REUTERS
