A gap-up open on Friday failed to attract any buyers or short-covers and NQ drifted sideways with a bearish bias. The Fed will continue to trigger buy programs during low volume night trading hoping to trigger buying or short-covering when the market opens for the regular trading session. However, the forces of deflation continues to put downward pressure on the equity market.
Even with the launching of a new rounds of global QE programs and the launching of helicopter money programs in Japan failed to sustain continuing.
Unless the Fed triggers major buy programs, look for the equity market to continue to trades sideways down to support before it can make a major trending move up again. NQ more relevant prior high support on the daily chart is at 4530.
Unless the Fed triggers major buy programs, look for the equity market to continue to trades sideways down to support before it can make a major trending move up again. NQ more relevant prior high support on the daily chart is at 4530.
Loretta Mester, president of the Federal Reserve Bank of Cleveland and a member of the rate-setting Federal Open Market Committee (FOMC), signalled imminent launching of Helicopter Money program in the US, to stoke spending, in addition to interest rate cuts and quantitative easing.
Helicopter money is where stimulus is directly pumped into the real economy, a direct payments to households and businesses, not through the banking system.
More QE and Helicopter Money is extremely bullish for Gold and Silver prices
