Massive intervention by central banks to support the market help the stock market bounced from an extreme oversold market condition on Tuesday. With global capital continuing to stampede out of the US dollar assets, the stage is set for a sustained bear market decline.
On the short term intraday time frame, on Wednesday if the market is still in crash mode it should tank again on Wednesday to retest the low and it the recent swing low does not hold, a bigger crash is a real possibility.
However, if central banks are able to keep the market going up on Wednesday the next liquidation decline has been delayed.
Key inflection price level for NQ on Wednesday will be 6650.
-- If they can push NQ back above 6650, selling should be under control until it rally back up to the next resistance, which is at 6850.
-- Below 6650 for NQ implies the stock market selloff should continue
