On Monday, NQ opened with a big gap-up and then ran up to 3915 resistance before pulling back down in the afternoon. Although NQ was much more bullish than the S&P and the Dow, all the three indices were not able to breakout above their respective resistance level.
Key price level for NQ on Tuesday is 3915.
-- Failure to clearly break above 3915 is an indication that it should be sold, with first support at 3890. Breaking below 3890 is likely to trigger momentum algo sell programs, target down is 3840 support. Other possible supports are 3880 and 3870.
-- On the other hand, a clear break above 3915 resistance could trigger more short-covering that could propel NQ up to resistance levels at 3930, 3940 or 3950.
