The stock market sold off on Monday, with NQ selling off the most in percentage term, even with the overnight buy programs that was designed to cause a gap-up opening and a run-up short-covering rally for Monday.
NQ opened with a gap-up that was sold immediately, selling lasted all day long, NQ retreating after rcently hitting upper trend line resistance and overbought condition. NQ may be on its way to lower tend line channel support now at 5950, with some strong supports along the way at 6050 and also at 5975.
Key price level for NO on Tuesday will be 6090, now acting as resistance.
-- Failure to clearly break back above 6090 is likely to attract more selling, with critical support at Mondays swing low.
-- Breaking back above 6090 will keep selling at bay, and may trigger some short-covering.
-- Should NQ clearly break below Mondays swing low, it is likely to attract heavy selling., supports are 6050 and 5975.
The beginning of a bear market could be just 1 to 2 month away
