Big rally in the equity market on Monday, a second day up in a row, due to a combination of factors including an extreme oversold condition and massive global central banks intervention.
Tuesday will be the third pullback day. The third pullback day is often the day the trend resumes, which in our current case, it is when the market should resumes its down trend. Massive central banks intervention could temporary stop that from happening.
Thus on Tuesday, I am looking for either, first a rally to resistance, then sell-off, or immediate selloff from the opening bell, and it depends on the degree of central banks interventions.
For NQ, resistances where sellers would come back in area 8925 a prior swing low, and then 9100 the 50-day moving average on the daily timeframe (dally chart)
Key intraday support on Tuesday will be 8500.
-- If NQ can stay above 8500 we could see rally attempt, with resistance at 8925 and 9100.
-- Below 8500 NQ is in free-fall mode
