United States has now officially imposed economic sanction against Russia as their next move. Russia is now taken out of the international money transfers system, the S.W.I.F.T..
Russia is sure to retaliate with their own sanction against the US and its allies in the west, their first target is to require payments for their oil and gas export in non-US$ currency, effectively taking the US$ out of the international reserve status, and certain to accelerate the demise/collapse of the US$.
Russia and Russian-based companies may stop making payments on their debt to the western banks, triggering the implosion of derivative contracts that is certain to cause a cascade of bank collapse in the US, Europe and globally.
United States and its allies will then retaliate with their own additional sanction which also make the already bad situation worse. We may be witnessing the beginning of financial Armageddon not only for the west by also for the whole global financial system.
Financial war could become military war very quickly and that it can easily turned nuclear - a no-win scenario.
In the short run, for Tuesday, key price level to watch for in NQ is 3650, and 1846 for ES.
Monday was the first of normally 2 to 3 pullback-up days in the current downtrend, if so, price should not break below Monday swing low, so a break below Monday's low is very bearish indeed, an indication that the current downtrend is very powerful, implies that pullback has ended and the resumption of the current downtrend on the daily chart.
-- Bullish above 3650 for NQ the next NQ resistance is 3680. For ES resistances are 1856 and 1864. As long a Monday's swing low is not violated the momentum is upwards.
-- Very bearish indication if Monday's swing low is violated, next target is a test of Friday's low. A clear and sustained break below Friday low is certain to trigger a massive momentum SELL algo that can tanked the market down very hard and quickly. NQ supports are 3600 and 3580, for ES they are 1822 and 1805
