A sideways choppy market on Wednesday with NQ trending up in the morning and then trend down in the afternoon.
On the daily chart and the 60-minute chart, NQ looks bullish and could rally up to resistance at 25,400-25,500
For NQ to be bullish it has to stay above yey support is at 24,890. A clear break is an indication NQ is going back down to 24,000 support.
NQ Futures Chart
With so many banks on the verge of collapse due to their massive loses losses from their short positions agains a parabolic metals moves to the upside, a massive coordinated attack by the banks and exchanges triggered a cascade of selling that tanked the metal market on Friday.
With so many leverage plaertys that are long the market in deep losing position, failure to top up their margin call due at the opening bell on Monday could cause another day of massive crash in the metal market. It would also affect overall liquidity in the financial market, certain to trigger a massive bearish overall market on Monday.
Look for potential crash as market participants are forced to sell what they can to balance their portfolio. I am expecting a very bearish market on Monday if the precious metal are not able to bounce sharply.
Precious Metals and base metals is the beneficiary of the current volatile geopolitical risk.
Fir the USA invaded Venezuela and threaten to invade Cuba, Panama and Mexico. Then the USA is going to annex Greenland.
Russia is firing a warning to the Western European who are so eager to go to war with Russia. The European are ggoing bankrupt and they think that war will be good for their economy. What they don't know is that the conflict is going to nuclear very quickly and everyopne dies.
Anything is possible, but we know gold and silver is going to continue to rally to unprecedented height.
Next week is going to be a low volume market actions as most market participants are out of the office for the year end olidays.
As such we can expect a very low volume market action, anything is possible, a slow choppy actions or a big swing actions.
While the equity market rally has stalled due to low investors participation with Christmas Holidays and the Year End holidays coming up, the precious metals market, Gold, Silver, Platinum and Palladium continues to rocket up
Gold, Silver, Platinum and Palladium weekly chart
Santa Clause rally started on Thursday last week, and should continue on Monday, with the next key resistance to break at 25.800-25.900.
A break of that resistance is going to trigger a lot of forced short-covering. If so, the next higher resistance is at 226,400.
A gap-up open for NQ on Thursday but then it traded sideways the rest of the day
Intraday support is 25,200 and intraday resistance is at 25,350
The daily chart is bullish, and if it can trade above 25,350 we could se a burnish day on Friday with the next major resistance at 25,800
A large down day for NQ on Wednesday. As such, we could see either a sideways consolidation or another large down day again.
Resistance is 25,300 and support is 24,000
Santa Clause rally is still illusive, as AI companies, NDIDIA and Oracle drag NQ down with it.
A sideways morning price action that was followed by late day rally from oversold bounce on Tuesday. Without major negative news in the morning the rally should continue overnight and into the morning session. If so the enxt resistance is at 25,400 on the December contract.
NQ would need to break back below 25,000 to turn bearish again.
Is Santa Clause Rally just starting?
A sideways consolidation day on Monday following a large down day on Friday..On Tuesday we could see three scenarios that could happen.
If NQ stays above key support 25,000, we could see another sideways choppy trading action, or an oversold rally,
A break below 25,000 price level could cause a cascade of selling, with the next support at 24,000. It is possible to get to 24,000 in one or two days.
Santa Clause Rally is still holding this market up, but against strong selling pressure, will it hold? We shall see.
