Spooked by President Trump trade war rhetoric, the stock market opened with a huge gap-down on Monday, then sold off very hard all day although they were able to trigger a huge rally at the end of the day.
The Dow again broke below its key 200-day moving average on Monday, its third test and its third break. Although buyers were able to push it up at the end of the day, it looks very ready for a massive sell-off. On a clear break below the 200-dma, the selloff can easily trigger a very bearish "death cross" technical condition.
For NQ on Tuesday, support is at 7000, and resistance is at 6160, a 160 points trading range
-- As long as NQ remains above 7000 selling may have been exhausted, until 7160 resistance.
-- A break below 7000 is likely to trigger another round of selling, and the next major support is 6650.
