Price action on Monday either is a setup for a strong breakout above 5850 resistance or a setup for a large pullback down move. The key to the direction of the next move in NQ will the inflection price level at 5850.
-- Trading above 5850 could keep major selling at bay, thus has the potential to trigger a fast rally to retest recent swing high at 5903.
-- Failure to stay above 5850 could attract some selling that could send NQ down to support at 5825 then if that does not hold, the next lower support is 5805
Chinese small-cap shares tumbled, leading the market lower, amid concerns about tougher regulations and more initial public offerings following a high-level conference over the weekend attended by President Xi Jinping.
