On Monday the stock market opened with a large gap-down and then sold hard most of the day until late afternoon when the Fed buyers we finally able to push the market up into the close.
A sharp selloff in Asia is dragging the US stock market in overnight trading, and if it continues into the morning we could have another sharp selloff day on Tuesday.
Deflationary pressure is starting to grip the global economies and markets and until and unless the Fed announce massive QE4 the markets is going to continue to spiral down, and at some point, it can get disorderly and out of hand.
For Tuesday, key support for NQ will be 3900.
-- Selling pressure is likely to intensify below 3900.
-- Selling pressure is likely to be subdued above 3900.
The Dow potential downside target
