Following heavy selling and a very large down day on Monday the market consolidated sideways on Tuesday. Previous consolidation following a huge down days has lasted one day and three days, thus there is a possibility that Wednesday could be a huge down day.
With trailing stop-losses for those who bought the current decline congregating just below Tuesday low, the key price level to watch for will be Tuesday swing low.
Key price level to watch on Wednesday will be 6680 support and 6820 resistance.
-- A break above 6820 could trigger a quick move up to 6900 resistance where selling will come abck in that could overwhelm buying.
-- Breaking below 6680 is likely to trigger another round of selling that could cause a capitulation decline..
Facebook reported disappointing earning on Tuesday and could influence the market in a negative way on Wednesday
