NQ opened below key support on Tuesday and then sold off hard, dropping down almost 150 points on Tuesday, a huge bearish down day.
A huge down day is often followed by a narrow range consolidation day. However, there is nothing stopping NQ from dropping down and trend down again on Wednesday.
The low for NQ on Tuesday was a test of prior swing high from June 11, 7625, with a small breach of support before trading sideways into the close. Should NQ break below that support on Wednesday we could see another large down day.
If on the other hand, support is not violated, we could see a sideways consolidation pattern on Wednesday, with a small chance of a strong rally.
Gold continued its massive short-covering rally on Tuesday
