On Monday morning, NQ was trading below prior day low just before the opening bell, but managed to open just slightly above Friday low by the time the market opened for regular trading on Monday.
However, selling algos triggered at the open quickly overwhelmed buying and the market tanked hard, quickly dropping down to some support. Profit-taking and buying at support cause NQ to trade sideways for the rest of the day, created a trading range that should serve as key area of support and resistance for Tuesday.
On Tuesday key trading range to watch for breakout will be 6825 - 6910.
-- Trading above 6910 is likely to trigger buy programs that can quickly catapult NQ up to the next resistance zone at 6990.
-- Trading below 6820 is going to trigger another round of liquidation selling, next support is October low 6580. A break below that may cause a free-fall as stop losses now congregates below that 6580
