On Tuesday NQ sold off hard in the morning, easily broke below 5400 key support, after a retest of the break, tanked hard down to 5360 support before buy programs was able to push the market back up to retest broken support again, 5400, now acting as resistance.
On Wednesday 5400 will be key price level.
-- Failure to clearly break above 5400 is going to attract another round of selling. Supports are 5360 then 5340 which is the location of NQ 50-DMA on the daily chart. A break below the 50-dma would turn buyers into sellers. Failure to break below its 50-dma is an indication NQ is going to continue to rally to another higher high.
-- Breaking back above 5400 on Wednesday is going to trigger some short-covering rally, with the next resistance at 5440.
The bear market is starting to come out of its hibernation
