NQ tanked hard again on Monday, with many bulls trapped and were forced to liquidate. A bigger sell-off could occur if those remaining trapped bulls were forced to cover.
With NQ swing low on Monday at major support zone 12,850, we could see a bounce on Tuesday. However, should 12,850 support fail to cause a bounce, many trapped bulls may be forced to cover.
If so, we could see liquidation decline with the next downside target at the 50-day moving average on the daily chart, currently at 12,370
NQ broke below its 20-ma on the daily time frame on Monday, an indication that the coming bounce should be to lower high, and should be a bounce to short.
