A huge opening gap-down for NQ on Monday following a huge gap-down on Friday. The market is simply reacting to shrinking liquidity in the market from a combination of interest rates increases and the upcoming quantitative tightening event.
The Fed is now going to continue to raise interest rates in order to keep the US dollar from collapsing. As such, the Fed may continue to keep raising interest rates for much longer that most people think. As a result financial market should continue to decline.
For NQ on Tuesday, with the FOMC schedule to raise interest rates more agressively that most people thought, we could see the market continuing to drop.
On the intraday basis, NQ would need to trade back above 11,500 in order to reduce the selling pressure. If NQ should continue to trend lower we could start to see a massive crash as traders and investors are forced out of their long position due to margin call.
