After a large down day on Monday NQ spent all day Tuesday consolidating Mondays' decline. What happens next will depend on whether on not consolidation is completed.
Once consolidation has ended we should see another large down day again. However, if it is still in progress and needs to rally higher to the next resistance zone we should see another rally day on Wednesday.
Key price level for Wednesday will be 7440.
-- If NQ can stay above 7440 on Wednesday we could see another rally to higher resistance7520 to 7540 price zone.
-- Trading below 7440 is an indication that consolidation may have ended and that the next large down day is in progress. NQ needs to break below Monday's swing low to trigger huge sell programs that can tank NQ down to the next support level, the 200-day moving average on the daily chart, now at 7200.
However, the sell-off often overshoot support, at least temporarily, if so, lower potential downside target is at 7000-7100
