Last week Fridays high was a 50% retracement level of the entire decline from October high to December low. The 50% retracement level is a very popular level for many algos to enter their trade.
Sellers came on Friday, then selling continued on Tuesday. A break below Friday low triggered heavy selling that lasted most of the day with the typical end of day profit-taking near the close.
Key intraday price level for NQ on Wednesday will be Tuesday swing low, 6610.
-- Trading above Tuesday swing low of 6610 should keep selling under control. If so, we could see a sideways consolidation type of day on Wednesday, with support at 6610 and resistance at 6735.
-- Should NQ trade below 6610 we could see another round of selling. If so, supports are at 6525 then 6475.
