NQ dropped down hard on Tuesday dropping down to strong support before it stopped dropping.
Overnight NQ has rallied over 200 points from the close in anticipation of the Fed cutting interest rate in July.
However, given the current situation, the Fed is likely to no cut rate this time. As such we could see the bounce fade, and start selling off.
As long as the current technical support around 18,750-18,800 hold, profit-taking and support-buying algorith could still cause a big bounce.
Key inflection price level for NQ on Wednesday will be at 18,962, bullish above it, with upside target at 19,200, then 19,500, strong overhead resistance at 19,700
Bearish below 18,962 but NQ needs to clearly break below 18,700 to cause liquidation. If so, next downside target is at 18,200.
