With the new Fed Chairwoman testifying to the financial services committee on Tuesday it was easy to predict that the Fed would continue to push the stock market up just to make Janet Yelling looks good
The Fed buying binge should continue for a while, with or without any pause, to ensure that major US stock market indices, the Dow, the S&P and the Nasdaq would make another higher high. NQ was just several points shy of the recent high, so for NQ a new high could easily be achieve on Wednesday, while the Dow and the S&P has several layers of resistance to break through.
With the Fed having to print so much dollars to buy the stock market and to buy back US Treasury bonds being dumped by world central banks, gold suppression scheme is starting to unravel. Make no mistake, the world central banks are dumping US dollar treasury notes and bonds ahead of the "Currency Reset" and the loss of US$ status as the world reserve currency, to be replaced by some form of a gold-back world currency.
On Tuesday we had gold breaking out above key resistance 1280 that has been holding recent gold rally, with the next key resistance is 1300. The Fed would definitely try their very best to suppress the price of gold, but, a clear and sustained break above 1300 is likely to trigger massive short-covering rally, possible with huge opening gap up, that could propel gold very quickly to the next resistance 1380 and then 1440.
Key support for Wednesday are 1810 for ES and 3600 for NQ
-- Above key support level implies the uptrend is continuing, target is higher high. For ES resistances are 1820, 1827-1830 and then previous high 1846.
-- A clear break below key support level is an indication the buying frenzy is taking a pause, letting the market to consolidate before pushing higher. ES support are 1790-1795, NQ support is 3535-3540.
