The Dow Jones Industrial Average dropped about 177 points on Monday with mainstream media blaming it on rising bond yield. The true culprit is the outflow of capital from the US dollar asset before the US dollar collapses even further.
The outflow is just at the initial stage. The stage is set for a 1987-style stock market crash as investors flee the US dollar asset.
Critical short term support for NQ on Tuesday will be 6980.
-- Breaking below 6980 could trigger a cascade of selling, With everyone now long the market there is no more buyer, thus selling could get out of control.
-- With NQ futures pointing to a huge gap-down at the open, NQ would need to get back above 6980 to keep selling at bay and under control.
