With the US debt ceiling suspended last week, without much fanfare and media coverage, suspended for the next 13 months, the Fed is now free to print as much dollars as needed to bail out their member banks and to continue to inflate the stock market bubble, the real estate market bubble and the bond market bubble, designed to make Janet Yellen looks good.
With Janet Yellen as the Fed Chairperson, a more trigger happy money printer than Ben Bernanke, the stage is set for unprecedented money-printing episode, so, going forward, look for these 3 bubbles to continue at a faster and faster pace until the dollar collapses.
The other beneficiaries of the upcoming unprecedented money-printing episode besides the stock market and the real market are the precious metals market (gold, silver, platinum) and other real assets.
The casualty will be the US dollar, to collapse, which would then take
down the whole global fiat currency regime and the bond market collapse as traders and investors run away from paper currency to real asset.
The signs of imminent dollar collapse are all around us, such as the dollar falling and gold and silver price rising even with the Fed's gold price price suppression scheme in full force.
Gold has now clearly broken above the down trend line and above the 200-day moving average, setting up a stage for the algorithms to change their trade direction from selling pullbacks to buying pullbacks, and look for the shorts to panic and cover, setting up for the gold price to rocket up or large opening gap-up.
Gold next upside targets for the current breakout is between $1,400 - $1,450, but, on its way to the target price, there is a very strong resistance area to break, $1,350-$1,360, which may or may not cause a large pullback.We must continue to keep in mind that the Fed has unlimited amount of dollars to suppress gold price.
For Nasdaq and S&P and the whole equity market, on Tuesday --- look for the Fed buy programs to continue as Janet Yellen will be testifying before congress sometimes this week, even if there is some selling pressure, as the beginning of the week tends to be bearish.
Support for ES is 1820-1825, for NQ support is 3630-3635.
