Following a hu8ge down day last week Friday NQ traded sideways consolidating all the selling that occurred on Friday. The downtrend is likely to continue with a trending down day on Tuesday. To do so NQ would need to trade below Monday swing low.
There were strong support at Mondays swing low, the 50% retracements of the rally from June 16th to August 16th high, and the 50-day moving average on the daily chart.
Another strong support comes in at around 12,200, which has the potential to cause a pause on the current decline. However, a break below 12,400 could come with heavy selling that could easily slice through 12,200 support.
Key intraday inflection price level for NQ on Tuesday will be at 12,600, bullish above it and bearish below it.
