NQ opened with a huge gap-up to end wave 5 up on the 60-mnute chart as mentioned in yesterday guidelines. A such NQ sold off very quickly on monday, dropping down to support before trading sideways, consolidating the huge decline.
NQ is set to drop lower on Tuesday, but strong support is now at 11,540. NQ would need to clearly break below Monday swing low to trigger more selling. if so the next support is 11,440, then a much stronger support at 11,275
However, as long as 11,540 support is not clearly violated we would see more sideways trading pattern, or a rally back up to Mondays swing high simply because the market is being directly supported by the Fed, and the may not want to let the market go down.
