As expected and outlined in the last blog which was for Monday's trading session, the stock market sold off very hard on Monday.
There was a very large end of day rally on Monday as the market dropped down to some major daily support zone, helped by panic Fed-PPT who triggered massive buy programs to prevent the decline from getting out of control.
The previous time the market had a huge rally off the day low was two weeks ago which resulted in a large 3-day rally before continuing the downtrend.
Would we see the same pattern playing out again, we just have to be aware of the possibility. If so the next strong resistance would be again at 7100.
Key intraday price level for NQ on Tuesday will be 6780 area, as of Monday's closing price is acting as resistance.
-- Failure to clearly break above 6780 is going to attract another round of selling. If so, we can see another sell-off day.
-- A break above 6780 could trigger some short-covering, If so the next resistance is 6900.
The bear market is still in progress at this time
