After rallying up towards key 50-day moving average resistance at 6770 at the end of last week NQ has been dropping back down to crucial 20-day moving average support, at 6600, setting up either a bounce from support or a break below support.
NQ support is now at 6600 price level.
-- A break below support is very bearish and an indication NQ is going to crash down below its key technical price support level, the 200-dma which has been tested twice in April and held. A test this time around will be the third test, and is likely to be broken. A break could cascade an avalanche of sell orders crashing NQ down.
-- A bounce off the 20-dma support on Tuesday could be short-lived but it should keep selling under control.
