With most investors long the market, Tuesday overnight selling continued into the open and into the morning trading session running over trailing stop-losses along the way.
Attempted reversal at noon failed to reversed the trend as the Fed buy programs continued to get overwhelmed by margin selling in the afternoon.
The Dow closed the day with over 370 points down and NQ over 100 points down. Whether or not this is a typical one day selling, or more selling to come, will depend on where the market trades on Thursday
For NQ, key support on Thursday will be Wednesday swing low.
-- Staying above Wednesday swing low should keep sellers under control, implies a sideways consolidation trading pattern or a rally day.
-- A sustained break below Wednesday swing low is going to trigger another round on uncontrollable selling activities, and the next strong support is 5450 to 5500 prior swing high on the daily chart.
