With crude oil selling off on Monday, after rallying to a higher high in early afternoon NQ sold off hard into the close, breaking below key support zone, setting up a bearish day on Tuesday unless NQ can get back above 4200 and crude oil rallying back up.
With the price of crude oil likely to tank further on Tuesday, unless the Fed intervene aggressively overnight to push the crude oil price up, the equity market is very likely to get drag downward.
Key price inflection level for NQ on Tuesday will be 4200.
-- NQ is bearish below 4200, with first support at 4170. A break below 4170 is likely to tank NQ hard, especially if the price of crude oil continues its selloff.
-- Breaking back above 4200 and a rallying crude oil price should push NQ back to higher high above Monday swing high.
