Another narrow-range choppy consolidation pattern for NQ on Monday, and they are still not able to close NQ above the key 50-day moving average on the daily chart, 7540.
The FOMC will meet this week, and many investors may be waiting to see if the Fed is going to drop the word 'patience" from their minutes before making their decision. As such we can see another day of choppy action on Tuesday.
Key intraday inflection price level for NQ on Tuesday will be at 7530
-- Opening below 7530 implies a drop down to 200-ma on the 5-min chart, where it either bounce from it or break below it. A break below indicates a further decline, with next support at 7440
-- If they can cause NQ to open above 7530 we could see a rally to higher high above Monday high. With many still waiting for the FOMC language on Wednesday before they make their major decision, a higher high could get reverse back down.
