Going into Monday trading session, NQ looks like it wanted to rally, but NQ is still very bearish on the daily chart, still trading below all the major moving averages, the 20-dma, the 50-dma and the 200-dma. All major algorithms are still in sell mode.
On Monday NQ opened with a huge gap-down, inside prior day range but very quickly dropped below prior day low, triggering all algos sell programs, tanking NQ down , triggering a large down trend without any reversal, with NQ closing very near the day low, setting up another large trend-down day if NQ breaks below Monday low and trend lower, or consolidate, with or without making a lower low below Monday swing low.
Key inflection price level to watch for on Tuesday will be the 50-period moving average on the 5-minute chart, at 6672
-- Trading above 6672 is an indication NQ may be going into sideways consolidation pattern, with resistance at 6800.
-- Trading below 6672 is going to attract selling. A sustained break below Monday low is going to tank the market, NQ downside supports are 6600, 6550 and 6400.
Without intervention by the PPT, the market could go into free-fall.
