On a short trading day ahead of the Christmas day, the stock market tanked hard on Monday as deflationary forces continued to assert itself. Investors has started to panic as the fear gauge VIX rocketed on Monday, signaling a temporary bottom may not be too far away.
The plunge protection met in preparation for their market intervention as the stock market enters a potential free-fall scenario.
NQ tanked hard on Monday breaking below minor support at 6000. With the next strong support not until 5000 the stage is set for a real crash unless of course the PPT intervene aggressively to calm the nervous investors.
Key resistance price level for NQ on Wednesday will be 6000.
-- Trading below 6000 could trigger massive algorithm selling.
-- Staying above 6000 should keep selling under control.
