The stock market euphoric rally finally stalled on Tuesday with huge decline in all the major indices, the Dow, the S&P 500, the Nasdaq.
With almost every analyst currently extremely bullish, the market may have topped. Whether or not the current bull market can make another higher high before the bear market can begin, only time will tell.
It seem very likely that the top is in, and the long awaited bear market may have just started the beginning on its first leg down (wave 1), which usually retraces about 25%.
Usually following a massive selloff like on Tuesday the market consolidate and trades sideways before the next big decline commences. However, if selling is really intense, another large down day following a big down day is also highly likely.
Short-term intraday price inflection level for NQ will be 5360. Watch the opening price action and also price action soon after the open, because the Fed may intervene aggressively to push the stock market up.
-- If NQ can trade back above 5360, look for selling to remain under control, resistance is 5400.
-- Remaining below 4360 put heaving selling pressure on the market, next support is 5310 followed by 4245 then 5150.
The bear market may have just begun.
