A big opening gap-up above prior day high triggered short-covering rally, but heavy selling by the double-top algo sellers coming in around 7725 stopped the rally, sending NQ back down to key intraday support of FT Pivot and the 200-period moving average on the 5-minute chart which on Monday was at 7655.
There was a small profit-taking bounce for NQ at the end of the day, which pushed NQ back up to slightly above the 200-ma on the 5-min chart, which at the end of the day sat at 7670
On Tuesday, the 200-ma on the 5-min chart has gone a bit higher to 7670, which will serve as key line-in-the-sand for NQ on Tuesday.
-- If the opening is above 7670, with the daily algos already long, NQ has to rely on the intraday buyers to push the market up to retest the 7725. A retest of 7725 is going to trigger another round of double-top selling
-- If however, NQ opened and trade below 7670 on Tuesday, intraday 5-minute algos selling could tank NQ down to the next lower support at 7618. Then if the market do get very bearish, NQ could then continue to drop down to daily support, the 20-dma
The 20-dma support on the daily chart does not come into play until NQ has dropped down to near 7565.
