FOMC decision announcement on Wednesday. As such we could see the stock market goes either way, up or down or stay sideways, as it all depends on what the Fed says about what they are going to do.
What we know is that the Yen carry trade is dragging the market down against the Fed liquidity injection and the bullish Santa Clause rally bullish session.. We just have to wait see.
A sideways narrow range pattern for NQ on Monday. Tuesday is likely to be the same as investors wait for the FOMC official announcement on Wednesday.
A factor that can influence the pattern is the Japanese yen carry trade. Heavy unwinding could easily overwhelmed positive action by the Fed and cause unexpected heavy selling, a black swan event..
A normal Friday sideways trading action last Friday. The FOMC will announce their decision on monetary policy on Wednesday and it is expect to cut short term interest rates by 25 basis point.
The Fed is also expect to announce a new Treasury purchase programs, (new money printing program) which should be bullish for precious metals and also for the stock markets.
Key resistance zone for NQ on Monday wilt be at 25,800-25,900. Bullish above it.Support is 25,500.
After trading for three conswcutive days below double-top resistance, NQ looks ready to break above 25,900 and rocket higher.
However, sice Friday tends to be a choppy sideways day, it is also possible NQ would need to wait until next week to breakout aboev 25,900 resistance
25,500 is key intraday support for NQ on Friday
FOMC meeting next week
A choppy day on Tuesday. The rally shuld continue but in a choppy pattern because the stock market is in a very overbought zone.
December is a bullish month, with the Santa Clause rally condition. As such the short are stating to cover causing a slow rally.
Key intraday support for NQ on Wednesday will be at 25,400, bullish above, bearish below it
With most major market participants back on Monday we could start to see the market moving bidirectionally, again, up or down, depending on where it trades in relation to its key inflection price level, hich is at 25,200
Bullish above 25,200, with 25,500 as key breakout level to the upside and bearish below 25,200, with 25,000 as key support.
Silver price is in breakout mode.
Wednesday clse was at key resistance of 25,400, which will be key price level for Friday trading session.
Friday will be a short day so anything is possible. NQ could trade sideways below 25,400, or breakout above it a trend higher.
The next higher resistance is 25,800-25,900.
After dropping down to support soon after the open on Tuesday the market rallied the rest of the day. With Thanksgiving holiday on Thursday anything is possible.
However, Trump would love to see the stock market rallying back up for the Thanksgiving holiday.
Key inflection price leve for NQ on Wednesday will be at 25,000, bullish above, with the next resistance at 25,400-25,500
Bearish below it.
The 2-day bounce from 24,000 strong support zone, NQ has hot its first resistance at 25,000. As such a pullback sideways day is likely on Tuesday as traders took profit ahead of the Thanksgiving holidays.
First intraday support for NQ on Tuesday will be at 24,600-24,700 zone. It should hold. Hoever, should it breaks we could see a sharp drop lower.
If NQ shoui;d continue above 25,000, the enxt strong resistance is at 25,400-25,500.
A sideways trading pattern for NQ on Friday as short-sellers took profit ahead of the weekend. Monday could be interesting because many investors are out of the office for the US Thanksgiving holidays on Thursday.
With the markey in deep oversold at support and many market participants out of the office, we can eithe trade sideways for th week or break below support and sell-off.
Key support for NQ is 24,000, bearish below it and bullish above it.with first resistance at 24,700, then 25,000.
