With most traders and algos out of the market on Monday, new year eve trading was choppy, sideways, narrow range and low volume. On Wednesday, the stock market may be coming back to normal as many traders will be back to work.
With NQ still trading below its 20-day moving average on the daily chart, at around 6550 as of Monday's closing, most daily algos will not be active until NQ has rallied back up to 6550 on Wednesday. As such, it will be left to the shorter-term algos to continue the rally or trend back down again.
Key intraday price level for NQ on Wednesday will be 6300, acting as support as of Monday's closing price.
-- If NQ remains above 6300 on Wednesday, short term intraday algos will be buying. If so the next upside target is 6500 to 6550 resistance.
-- Trading back below 6300 could trigger selling, first support is at 6250. A clear break below 6250 could attract an avalanche of selling, and lower supports are at 6160-6180. Should those level get violated we could see another free-fall scenario.
