NQ opened and then rallied all day long into the close, with a small selloff after the close following a disappointing earnings reports from Google (GOOG). Should that translate into a bearish open on Tuesday we could see a pullback down day on Tuesday.
Key intraday line-in-the-sand price level for NQ on Tuesday will be its 200-ma on the 5-minute chart, which was at 6916 as of Monday's closing price.
-- If NQ should trade below 6916 on Tuesday we could see some intraday selling that could tank NQ down to first support at 6830 (prior day high now support). If that does not reverse NQ back up, the next lower support is at 6800.
-- If NQ should continue to trade above 6916, we could see another rally day on Tuesday.
NQ daily chart is still firmly in an uptrend mode, with the next resistance at 7100, but it is now in overbought territory, thus we could see some selling that could result in 1 to 2 days pullback.
