Wednesday was day 2 consolidation day. If the downtrend is still in fast mode Thursday should be a large down day. To do so NQ should break below Monday swing low and tank. Support is still at 18,500-18,700.
Overnight NQ has already showing weakness. Key resistance is still at 20,000. NQ needs to break above 20,000 to trigger a large profit-taking short-covering rally.
NQ traded sideways in a consolidation pattern on Tuesday. Major support is still far lower, between 18,500-18,700.
NQ may need to drop down to that support zone before we could see a multi-day pullback up moves. If so, then NQ should tank again on Wednesday.
Key price level to trigger a multi-day rally is 20,000. NQ would need to trade above and stay above 20,000 to trigger a big counter-trend rally.
A big opening gap-down and trend down day for NQ on Monday. There was a small profit-taking rally at the end of the day.
With NQ in extreme oversold zone on the daily, 60-minute and 5-minute time frame, is there a brief consolidation day coming before tanking again? we just have to watch price levels. The next major support is between 18,500-18,700 price zone.
On the intraday time frame, key inflection price level is at 19,500, bullish above, with the next higher resistance at 19,900-20,000, and continue bearish below it.
Two weeks of relentless selling sparked by President Trump economic policies, particularly the tariff war with the rest of the world has brought NQ down over 11% from its record high, that's over 2,500 NQ points.
Last week low was at strong support, a combination of prior pivot high and its 50-day moving average on the weekly chart. As as result, this week we could see massive 2 to 3 day rally, 1,000 NQ points, to relieve the oversold condition and to re-test broken support - now resistance at 21,000 price level before dropping back down.
To do so it has to stay above 20,000 price level. A sustained break below it is an indication of a more serious problem, and would trigger another round of liquidation selling, targeting the next support level, 18,500.
On the intraday time frame, 20,200 is key inflection price level, bullish above it, bearish below it, with key intraday support at 20,000
