NQ opened with a gap-down on Tuesday. After spending the morning trading sideways, afternoon buy program failed to close the gap, an indication of a strong selling pressure leaving may longs trapped and still holding on to their position. Unless NQ can rally back up to 4375 resistance on Wednesday and let them out, and instead sell-off, the longs would have to bail likely causing a liquidation decline.
Key inflection price level for NQ on Wednesday will be 4340 area.
-- Trading above 4340 would keep short-sellers at bay until NQ rally up to 4375 area.
-- Trading below 4340 will be bearish but NQ would need to break below 4300 to trigger massive algo sell programs
Bear Market Rally In Stocks may be topping. When Gold Breaks $1,300 Look For Serious Upside Acceleration
