Here's the chart I used in last week's article on the NQ:

Click on image to enlarge!

As discussed in that article, we were looking for the 2306 target and then the strong possibility of price failing between that level and next key .786 retracement resistance. Here’s a current pit session chart:

Click on image to enlarge!

The 2330 resistance was derived from the July 26th high to the August 9th low as shown with the red trendlines. When dropping from a swing high, the obstacle in the way of a NEW swing high is the .786 resistance retracement. This holds true on any security and timeframe, but certainly can show a dramatic reaction on a daily chart!

Let’s look for the possibility that support will hold, along with the top of the 50 CCI zero line. That’s the bold red line in the indicator panel at the bottom of the chart. Essentially that’s the relationship between price and the 50 period simple moving average, and at the moment it favors a pullback and additional long side afterwards. We’d need a break below 2042 to target a new daily swing low, so that’s our key support. Even with the resistance hold, we have no daily downside targets in play unless that corresponding support breaks. So consider that an important spot, especially if short!

For more from Mark including his “Chart of the Day”, visit MJBraun.net.