With Monday close below 20-ma on the daily time-frame for NQ, the stage was set for a sharp sell-off on Tuesday
And it did, with the open in the bearish zone, and below prior swing low, which triggered massive selling as stop-loss got run-over, and selling was triggered. A huge 400 points decline as measured from Monday's close for NQ.
First strong support for NQ is the previous triple top resistance, now support at 13,300 price zone. It also coincide with the 50-dma on the daily time frame. Whether or not it will bounce from that level, it is difficult to predict. It may just slice through it to the downside without any bounce.
NQ would need to break back above its 20-dma on the daily chart to turn bullish again.
