A bearish day in the stock market on Monday with NQ Mostly AAPL) dragging the whole market down.
NQ opened with a gap-down below key inflection price level on Monday, setting a stage for a bearish day.
Buyers tried several time to rally the market back up again but intense selling continued too overwhelm the buyers until late day profit-taking activities finally managed to pushed the stock market up about 40 points from the low.
NQ has now broken below its wedge trend-line support, and broken below its 50-DMA support, indicating that the ending diagonal /wedge has been completed and the stage is set for heavy and sustained selling, although it may have to wait a bit longer for the S&P 500 and the Dow to do the same.
On Monday, at its low of the day, NQ rally from a test of its 100-DMA on the daily chart, and as long as it hold, we could see a one or two days sideways action or rally before attempting to crash through it.
A clear break below its 100-MA on the daily chart, without first consolidating, could tank NQ quickly down to its next major support, which is its 200-DMA, now sitting at 5550.
Key inflection price level for NQ on Tuesday will be 5860.
-- Above 5860 selling should be under control until 5900 resistance.
-- Trading back below 5860 is bearish, next support is Monday's swing low, then 5835, which is key support on Tuesday.
Another sign that the economy is in trouble, today GM announced that it is going to Cut Entire Shift at SUV Factory, Laments “Moderating” Sales, Layoffs not Temporary
