On Monday, NQ opened with a huge gap-up above prior trading range high 7100 (resistance), a breakout day, then pushed higher into breakout upside target before trading sideways and then pulling back down towards key support at the end of the day.
Key intraday price level for NQ on Tuesday will be 7100, a very strong support price level courtesy of prior consolidation high plus the 200-ma on the 5-minute chart and the 200-dma on the daily chart.
-- As long as NQ remains above 7100 breakout price level, the breakout is still in progress. As such NQ should continue to rally with the next upside target is a break above Monday's swing high.
-- Trading back below 7100 is bearish, and indication the breakout is failing. If so we could see fast and sharp decline as breakout traders are forced to exit their long position and reverses to shorting the market.
Trump's plunge protection team is likely to be very active as trade negotiation with China comes to an end at least for now. Trump would want to see positive stock market response to the end of current trade talk.
