On Tuesday NQ opened with a gap-down below key line-in-the-sand of 7660, which the trigger some prof-taking selling, which then tanked NQ lower, which then ran over stop=losses congregating below prior day low.
NQ quickly tanked down to crucial support, the 50-ma on the 60-minute chart. Massive buying algos quickly rallied NQ back up to day high where sellers came back in to sell aggressively, dropping NQ back down to day low.
NQ essentially traded sideways between support and resistance on Tuesday, which is setting up a breakout possibility for Wednesday.
Resistance for NQ on Wednesday will be 7650, and support is 7590 (7590-7650 trading range).
-- A sustained break out of the 7590-7650 trading range could trigger a trending move out of the range.
-- A falsebreak out of the 6590-7650 trading range should trigger a fast reversal.
-- Opening and staying inside the 7590-7650 trading range is likely to cause a sideways trading pattern.
