With NQ opening below 4400 key resistance price level on Tuesday, a wave of algo short selling hit the market hard, erasing all of Monday's ramp job gains, dropping NQ back down towards key support price level of 4300 which has been fiercely defended for over two weeks.
The next time NQ breaks below 4300 it could cause an avalanche of sell orders that could overwhelm the Fed buyers. So key price level for Wednesday has to be 4300 support level.
- A clear and sustained breaks below 4300 could trigger relentless selling, next support is at 4200 then 4100.
- Staying above 4300 could cause a sideways consolidation pattern with first resistance now at 4350, or another ramp up job to 4400 again.
The trend on the daily chart remains in a down mode.
