Trade war between the United States and China continued to drag the stock market down on Monday with NQ falling about 300 points from Friday close. Trade war is going to get more intense, even if there is a temporary truce. Unless the Fed announces QE4 and cut interest rate, we are witnessing the beginning of a multi-year stock market decline.
The 1930's depression was a result of trade war, and it is coming full cycle, the current trade war will also usher in another great depression. Politicians do not learn from history.
On a short term intraday time frame, key price level for NQ on Monday will be 7320.
-- If NQ can stay above 7320 at the open on Tuesday we could see an oversold bounce, and likely very choppy, with upside target of 7440 and if the breaks, then 7500.
-- Should NQ open and trade below 7320 on Tuesday, we could see another large trending down day, with first support at 7200, the200-day moving average on the daily chart, but it is likely to be broken, with lower downside target at 7000 to 7050.
