With most weak shorts out of the market the stock market rally stalled in the morning on Monday and then started to sell off after the close of the European markets. NQ sold off all day, down to 4200 support at by the end of the day, setting up a sharp sell-off on Tuesday unless 4200 support can hold.
4200 will become key support level for NQ during Tuesday's trading.
-- A sustained break below 4200 has the potential to tri9gger massive algos short selling programs, first support is at 4170, but a strong support is not until 4100
-- If NQ can stay above 4100, it may be able to rally back up to 4245 resistance.
Key market driver for Tuesday remains the price of crude oil and the US dollar index.
