Market manipulators managed to pushed the equity indices up on Sunday night, in order to cause a huge opening gap-up on Monday, which it did.
However, they also hope to trigger massive short-covering rally to usher in Joe Biden winning the US presidency election. Short-covering did not happen in mass, instead, a huge gap-up triggered massive profit-taking selling which tanked the market down very hard, especially NQ.
As such NQ had a top-reversal tupe of day on Monday. It may not have much long-term impact, but on Tuesday we could see a follow-through selling in the morning.
Heavy selling on Monday could also mean a sideways market for NQ on Tuesday. Key inflection price zone for NQ on Tuesday will be at 11,800.
Trading below 11,800 level is bearish with the next support at 11,600. It is possible NQ could open with a gap-down and run down to 11,600 in the morning then rally back up, or just continue to sell lower. However, 11,600 is a very strong support zone.
Or NQ could open above 11,800 then rally to 12,050 resistance. A break above 12,050 could trigger short-covering. Failure to break above 12,050 could attract more selling.
Morgan Stanley's Michael Wilson has a very interesting chart of the S&P 500 before Monday trading session..
