Tuesday’s trade included a somewhat convincing rejection of the buyers. The NQ initially saw a quick retreat on the opening bell which was followed by several rounds of strong buying from the NQ. It appeared that the market would build on the upside move and start heading back towards 12200. Obviously, that didn’t happen with the sellers taking over for the balance of the session.
I’ve labeled the move off of the 11068 low as an a-b-c. What sits atop the “C” has yet to be decided and I need to allow the market to tell us rather than the other way around. That being the case – for tomorrow, we need to continue to allow for the upside to begin again. Should that be the case, the moves themselves need to be more of the “take no prisoners” type – and get back above the 200 MA’s and on up and above the 20 and 50 MA.
Additional breakdown should result in a clean break below the 200 SMA which is at 11635. Once it does happen additional pressure may create a round or two of acceleration. Support comes in at 11635, 11600, 11550, 15505, 1460, 11360, and then 11068.