On Monday the market consolidated its two large down-days, traded sideways all day with a close near at the day high.
If the market is not in free-fall we should get another up-day on Tuesday before resuming its downtrend on Wednesday. Failure to get a rally day on Tuesday is an indication the market is going to tank hard.
Key price level for NQ on Tuesday will be 4550.
-- Trading above 4550 is bullish for Tuesday. If so, the next upside target is the resistance zone around 4590-4600.
-- Trading below 4550 is bearish, but NQ would need to clearly break below 4400 to trigger another round of liquidation decline.
TED Spread (bank counter-party risk) surges to 4-year high
