It was a breakout trending down day for NQ on Monday, with the open below Friday's low, then after testing it up right at the open NQ sold off hard all day. The end of day profit-taking rally pushed NQ up into 50-ma resistance (7000) on the 5-minute chart.
Key inflection price level for NQ on Tuesday will be 7000.
-- If NQ should open above 7000, which is the 50-ma on the 5-minute chart, we could see a rally towards the 200-ma on the 5-minute chart. It also implies a sideways consolidation price pattern for Tuesday.
-- If NQ trades below 7000 on Tuesday we could seen sellers returning back to sell the market again If so, we could see another large down day.
