By the time the market opened on Tuesday the plunge protection team (PPT) was able to push the market up, with NQ back up to just above key 50-day moving average on the daily chart.
Continual buying by the PPT plus the 50-ma algo buying at the open rocketed NQ up and up and up until it bumped against the 20-day moving average which acted as resistance on Tuesday. Heavy selling by the 20-ma algos pushed NQ back down towards the middle of the day range as it was where NQ closed on Tuesday.
Going into Wednesday, resistance will remain at its 20-dma at 7565 and support at its 50-dma at 7470.
-- Breaking above its 20-dma may trigger some quick spike as the shorts covers.
-- But it is a break below 7470 support that is going to be more interesting as it may start to trigger some algo selling.
-- With trailing stop-loss congregating just below September low at 7430, a break below it could cause selling to get out of control
