NQ traded sideways in a very narrow range on Monday hovering mostly above 4800 well defended price zone. Whether or not NQ would have to bounce for 4800 before finally crashing down below it only time will tell.
But 4800 price support zone is getting weaker and weaker by the day, and with more and more stop-losses congregating just below it, a clear and sustained break has the potential to quickly tank NQ down to the next support level, 4700.
On the 5-minute timeframe, key price level for NQ on Tuesday will be 4820.
-- If the Fed can push NQ above 4820 and keep it above 4820 selling should remains muted and under control.
-- Failure to push NQ back up above 4820 resistance is bearish but NQ would need to clearly break below 4800 to trigger selling algos. In case of a clear break below 4800, the next lower support is 4700.
Moody’s: Deutsche Bank Nearing “Default Point”. In a research report put together by the credit agency’s ‘Analytics’ research division, Moody’s analysts write that Deutsche Bank expected default frequency remains at one of the highest levels in the banking industry, despite the bank’s efforts to shore up its capital position.
