Early morning buy programs triggered soon after the open, designed to trigger a rally to break above prior high, in order to run-over stop-losses thus triggering another round of short-covering rally.
Although NQ managed to break above prior day high, it failed to trigger short-covering. As such, sellers came in aggressively. Multiple rounds of sell programs crashed NQ down below 5440 key support then broke below 5428 support on its way down to 5400 strong support zone before reversing back up.
NQ closed just below 5440 previous key support, for Tuesday will act as key resistance.
-- If NQ fail to break-back above 5440 on Tuesday, seller would be back to sell the market,. If so, NQ may drop back down to retest Monday's swing low.
-- Breaking back above 5440 should keep sellers at back until it makes another higher high. A breakout to another higher high that fail to trigger short-covering is likely to bring in another round of selling.
