NQ traded sideways on Monday between 6600 support and 6700 resistance, a consolidation type of day, a setup for a breakout trending day.The direction of the trend will depends on the direction of the break.
Key price level for NQ on Tuesday is 6600 support and 6700 resistance (6600-6700 trading range).
-- A sustained break above 6700 is likely to trigger some short-covering,. If so the next resistance is at 6850.
-- A false-break above 6700 is going to attract heavy selling, downside target is 6500. However, there are several layers of supports that needs to be broken on the way down, first support is 6600, and if that breaks then second support is 6540 then 6500.
-- A sustained break below 6600 is going to trigger trending move down. NQ is trading down after hours due to Apple Computer shares (AAPL) tanking in overnight trading. If the open on Tuesday is below 6600, it is going to trigger a liquidation decline, with downside target at 6400 - 6260.
