Monday rally fizzled into the close as profit-taking and short-selling pushed NQ down into the middle of the day range at the close. With the daily chart still in strong down trend traders will be looking to sell rallies on Tuesday.
Key support for NQ on Tuesday will be 4320.
-- As long as NQ can stay above 4320, most short-sellers will be on the sideline. A rally up to 4400 could attract heavy selling activities that could push NQ back down.
-- Breaking below 4320 has is likely to attract algo sell programs, with the next support at 4300.
With central bankers on the verge of losing their battle with gold, on Monday heavy selling activities just managed to push gold down about $30 per ounce.
Commercial Short Positions In Gold Near All-Time Highs
