The Sunday nigh selloff in the equity futures market continue into the opening bell on Monday with NQ gapping down over 200 points on Monday. However, there was no follow-through decline as the Fed buy programs helped stabilized the market. After the huge gap-down open NQ simply traded sideways.
The Corona Virus outbreaks spooked the global market
Key inflection price zone for NQ on Tuesday will be at 9010, which is the location of the 20-day moving average on the daily chart.
-- If NQ can stay above 9010 it will keep daily selling algorithms at bay, and we could see a rally back up towards the recent high.
-- However, trading below it is very bearish as it could trigger another round of heavy selling with the next major daily support way down at 8700.
