Monday, February 5, 2018

NQ Guideline for Tuesday

The stock market crashed on Monday. US futures point to another weak open on Tuesday but central banks may step in to halt the collapse. If so we can see a wild trading on Tuesday.
Image result for 1987 stock market crash
At the opening bell however, there will be massive margin call liquidation selling, and if central banks does not intervene aggressively right away margin selling could lead to a bigger crash than Monday's selloff before it can bounce.
 
NQ strong support is at 6000, which is about 400 points lower than Monday's close. Strong support for the Dow is at 21,000, that is about 2,500 points lower than Monday's close, although there are several support levels along the way down to 21,000.
 
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