NQ 7100 resistance zone proved formidable. Heavy selling at 7100 resistance seems strong enough to hold off major short-covering rally.
Then after trading sideways just below 7100 on Monday selling finally overwhelmed buying on Tuesday as NQ tanked hard on Tuesday and continue to tanked in overnight trading on Wednesday night.
It was the yield curve inversion, a perfect forecaster of upcoming recession that triggers heavy selling on Tuesday. Unless the Fed and the PPT comes in aggressively to support the market on Thursday we will see a big down day in the stock market.
Key line in the sand for NQ on Thursday will be 6820.
-- Trading below 6820 is going to be bearish
-- A break-back above 6620 could keep selling under control as profit-taking buying activities ould keep the market from collapsing.
