A huge gap-up open on Tuesday, designed to trigger a short-covering rally, failed to attract enough buyers as selling overwhelmed buying, tanking NQ quickly before trading sideways into the end of te day.
On the daily timeframe, the technical pattern looks very bearish. NQ had 3-days of choppy rally before selling off on Tuesday, an indication the downtrend may have resumed..
To avoid a massive selling NQ would need to stay above double-bottom support at 10,777, a key technical support.. A sustained break is very likely to run over trailing stop-losses and trigger a sharp and large down day.
Key intraday line-in-the-sand for NQ on Wednesday is at at 10,975, bullish above it, bearish below it.
