NQ opened below prior day low, then sold off hard immediately dropping down to below prior support 7650 before rallying back up to retest the 200-ma key support-turned resistance.
When the rally rallied to break back above the 200-ma resistance on the 5-minute chart, seller came in aggressively tanking NQ back down to below early morning low, setting up a potential liquidation day.
Key price level for NQ going into Wednesday trading is 7670
-- Bearish below 7670, and very bearish if NQ can break and stay below Tuesday swing low.
-- We could see a consolidation if NQ trades above Tuesday's swing low. A break above 7670 implies a further rally to 7720 now strong resistance.
