On Friday at the open, NQ tried to rallied but sellers were waiting just below strong resistance 7100-7125.
Heavy selling overwhelmed buying and NQ subsequently sold off hard dropping down to just below key support at 6920 before they buyers are able to sally NQ into the close.
Key inflection price level for NQ on Monday will be at 7000.
-- Above 7000 buyers may try to rally NQ back up to retest 7100-7125 resistance, where sellers will be waiting to sell again. Buyers would need massive buying power to break through that resistance zone.
-- Trading below 7000 will attract another round of selling, with key support again at 6920. A clear break below 6920 will start to run over trailing stop-loss for those who are still holding their long position thus likely to cause a liquidation decline.
With mid-term election coming up this coming weeks the PPT may try to keep the market up for Trump. How successful will they be, it is not possible to predict, as anything is possible.
