Massive central banks intervention and a surprised 50 basis point rate cut by the Fed on Tuesday caused a quick spike higher in the morning that quickly faded away.
Intraday Tuesday NQ pullback down to the 200-ma key support, which held. If the downtrend is going to resume NQ should take out the recent low and break below the key 200-day moving average on the daily chart on Wednesday or Thursday.
If the low is not taken out tomorrow or Thursday, we could see NQ bouncing back up to its 50-day moving average on the daily chart before dropping back down.
Key intraday price level for NQ on Wednesday will be 8500.
-- If NQ could hold above 8500 we could see a rally to resistance at 9000 or all the way to the next higher resistance 9100.
-- If NQ should trade below 8500 we could see another round of algorithm selling, with support at its 200-dma on the daily chart, now at 8200. A break below that would cause a massive crash.
