The stock market consolidated, trading sideways on Friday, the second consolidation day following a very large trending down day on Wednesday last week.
If the selloff is to continue without a pullback, it should trend down again on Monday, and if so we should see a very large selloff day. The next downside target is 6500-6550 zone.
Key short term intraday inflection price level for NQ on Monday will be 6890.
-- Trading above 6890 should encourage some intraday buying and should rally NQ back up to retest Friday swing high. Should it breaks above Friday high and trigger some short-covering, it could rally back up to 7100 resistance.
-- Trading below 6890 could attract intraday selling programs, with key support at Friday's low. Should NQ clearly breaks below Friday low and run-over stop-losses we could see another liquidation decline.
