NQ rallied most of the day on Monday only to tank after hours due to a disappointing earning reports from Google.
Going forward, Google may not be the only company to report disappointing earning, as such Google could be a good barometer for the economy. If so, the stock market retest of the October high may have ended and the resumption of the bear market to follow soon.
Key price level for NQ on Tuesday will be 7830.
-- If NQ remains below 7830 on Tuesday we would see more selling. If so, strong support is at 7750 prior high in October 2018 and now key support. However, with trailing stop-losses congregating below 7740. NQ would need to clearly break below 7740 to trigger stop-and-reverse trade that could potentially tank the market hard. Remember, the Fed may intervene ahead of their meeting this week.
-- Should NQ trade back above 7830 on Tuesday, it should keep selling at bay, and as such the rally should continue.
