Of the three major equity indices, the Dow, the S&P 500 and Nasdaq 100 (NQ), it is only NQ that has broken above pervious swing high before the 10% meltdown, the January high.
As such, unless and until both the Dow and the S&P breaks above their respective swing high, NQ breakout could become a false breakout, resulting in a fast reversal back down as breakout traders get liquidated when NQ breaks back down below its breakout swing high.
A large selloff for NQ on Tuesday but previous swing high 7050, a key breakout price level, now support, stropped NQ decline on Tuesday.
Going forward, NQ either rally aggressively from 7050 support or breakdown below it. A break back down below it is gong to trigger massive liquidation decline, with lower supports at 6900 and then 6800
Key support for NQ is 7050, breakout price level
Trading False Breakout
