NQ rallied all day after re-testing the low from Friday sell-off. The rally stopped below key resistance at 25,000.
On Wednesday we could see re-testing of 25,000 resistance. And if it starts to trade above it, short-sellers will have to start to cover, thus triggering a short-covering rally.
Failure to re-break back above 25,000 is bearish, an indication its trying to re-test support. A break of support is likely to trigger a huge decline as the next strong support is at 22,000, that is a 2,000 point drop to support.
