NQ was engineered higher before the open on Monday, to cause the open with as huge gap-up above key resistance, forcing the shorts to cover which lasted until early afternoon.
Once short-covering ended NQ started to drop down quite sharply, setting up potential continual decline in the morning, with first support at 13,020 and then 12,940.
On the daily chart, the trend direction for Tuesday is unclear, as it could go either way, with key resistance at 13,120 and key support at 12,940
Line-in-the-sand for NQ on Tuesday will be at 13,120, which is also a key resistance level. Bullish above it bearish below it.
