Self-serving speculative attacks on the Euro-zone countries by their adversaries continues to intensify, which led to intensifying credit crunch causing the stocks, metals and commodities to tumble and the US$ to spike up. The plan is clear, to collapse the Euro and gold, so that the US Federal Reserve can print money as much money as possible without instantly collapsing the US$.
These actions should give the US dollar some extra life before it collapse as well. The currently fast appreciating US$ is putting pressure on the dollar carry trade, causing it to unwind. And as the unwinding intensifies we could see a massive spike in the US dollar. A spiking US$ will crash the stock market, a very delicate juggling act indeed, with many potential unintended consequences.
For Thursday I will use 2230 as key inflection point.
- Above 2230 implies NQ is in a pullback-up move, targeting a move up to 2260 resistance. If that breaks, the next resistance is 2280 (strong resistance)
- A sustained break below 2230 implies the market wants to tank again, targeting a decline down to 2200, then 2185.
