The stock market sold off sharply on Monday, with NQ opened with a small gap-down but then sold off immediately, breaking through multiple support. NQ dropped down to just below 5100 key support price level before profit-taking caused NQ to trade sideways the rest of the day.
With both the S&P 500 and the Dow recent higher high came with a very pronounced bearish divergence on the daily chart, the selloff may not be over in just one day. Whether or not we would get a consolidation day on Tuesday before selling resumes, only time will tell.
Key price level for NQ on Tuesday will be 5100 support.
-- If NQ can stay above 5100 on Tuesday, look for NQ to either trade sideways or rally. First resistance is 5140 then 5155.
-- A sustained break below 5100 is an indication we would get another large down day. If so lower supports are 5080, 5060 and 5000.
